Metals One (MET1) has raised gross proceeds of £4.4 million through a placing of 220 million shares at a price of 2p.
Due to demand the placing was upsized to utilise the company's total headroom capacity.
The proceeds will be applied primarily to the Lions Bay Resources transaction, as announced by Metals One on 27 November, and for general working capital.
The company is in the process of agreeing loan funding with Lions Bay for the purposes of refurbishing a cogeneration plant in South Africa.
Lions Bay is also in the process of identifying potential mining assets in South Africa that may suit the intended gold roasting configuration at the plant.
Subject to receipt of a competent person's report and the configuration to be adopted, it is expected that the plant will require approximately US$4.5 million to restart steam and power production. Lions Bay expects to receive the final competent person's report by mid-December.
"It's pleasing to see institutional investment support for our Lions Bay Resources gold development strategy in South Africa,” said Daniel Maling, managing director of Metals One.
“Having additional capital ring-fenced to facilitate the buy and build plan will be key during upcoming negotiations and will very well position the company.”
View from Vox
Lions Bay could end up generating significant cash from gold production, and it’s good to see Metals One firmly positioning itself to benefit from all the upside that’s on offer from today’s higher gold price. Good to see too that the raise was upsized, and that demand in the sector is obviously still strong. Metals One has been very dynamic and fleet of foot in 2025. Next year will be one of real promise.