Metals One enters conditional deal over Lions Bay Resources stake

(Sharecast News) - Metals One said on Tuesday that it had entered new conditional heads of terms under which Lions Bay Capital would acquire 100% of Lions Bay Resources, including Metals One's 30% stake and option to acquire a further 19.99%, in an all-share transaction.

The AIM-traded firm said the proposed deal would consolidate Lions Bay Resources' South African gold and energy platform within Lions Bay Capital, including plans to restart the Barbrook and Vantage gold assets and use recently acquired cogeneration assets to support power supply.

Metals One is expected to receive 72.0 million new Lions Bay shares, including shares for its direct stake, option cancellation and financing and legal costs, taking its expected holding to 54.3% before any associated fundraise.

Metals One said the proposed structure implied an initial market equity valuation of about CAD 27.83m, or �14.83m, for its Lions Bay interest, compared with total investments of about CAD 8.25m, or �4.40m, representing a 237% unrealised gain.

Lions Bay is also expected to transfer 16.9 million Fidelity Minerals shares to Metals One, raising its Fidelity holding to 40.5%, while completion remains subject to definitive documentation, shareholder, regulatory and TSX-V approvals, and South African Section 11 approval for Barbrook.

At 1149 BST, shares in Metals One were up 3.5% at 1.48p.

Reporting by Josh White for Sharecast.com.

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