Metals One (AIM: MET1, OTCQB: MTOPF), a critical and precious metals explorer and developer, has invested $1.8mn in South Africa’s Lions Bay Resources (LBR) via convertible loan notes (CLN), it announced on November 27.
LBR, formed earlier this year to hold partnership assets, is jointly owned by Lions Bay Capital Inc. (TSX-V: LBI) and Salamander Mining.
According to Metals One, LBR has secured an option for $1.36mn over a large cogeneration plant located in an industrial park in South Africa. Research and planning are ongoing around modifying the plant to produce power and steam whilst also roasting refractory gold concentrates.
The partnership recently conducted due diligence on the plant and agreed to apply part of the funds from the CLN to exercising the option.
“The plant was inspected and verified by Terravista Solutions P. Ltd in October 2025 and ascribed a replacement value of $39.6mn,” Metals One stated in the release.
“Subject to receipt of a competent person's report, to be funded from the proceeds of the CLN, it is expected that the plant will require approximately $4.5mn to restart production of steam and power.”
A large chrome smelter operation adjacent to the plant could be an offtaker of the power and steam if ongoing talks succeed.
LBR aims to reconfigure the plant to include a gold concentrate roasting complex.
Gold mines situated nearby, which lack the capital to build standalone roasting facilities, can utilise LBR's Metals One, stated. LBR is, in the near term, working to acquire regional gold mining and tailings assets as potential feedstock for the gold roaster.
'South Africa is historically the world's largest gold producer, and we believe it has the perfect ingredients of abundant resources, infrastructure and mining expertise to become a leader once again,” Dan Maling, Metals One MD, commented.
“With the acquisition of the gold roaster and associated infrastructure, alongside the experienced mining team at Salamander, LBR has the foundations to be a significant, vertically integrated South African gold company.”
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