Metals One (MET1 ) has converted US$1.8 million worth of convertible loan notes to secure a 30% in Lions Bay Resources. 

Lions Bay Resources has just completed the acquisition of a cogeneration plant in South Africa, part of its wider strategy to create a vertically integrated South African gold business. 

It is 30%-owned by Metals One, 35% owned by Lions Bay Capital Inc, and 35% owned by the Salamander Mining management team. Metals One also owns 19.1% of Lions Bay Inc.

Salamander is headed by Graham Briggs, the former chief executive of Harmony Gold, South Africa's largest gold producer, and Lloyd Birrell, the founder and former chief executive of Theta Gold.

The Lions Bay Resources cogeneration plant is located in the Karbochem Industrial Park, Newcastle, South Africa. It was inspected and verified by TerraVista Solutions P. Ltd in October 2025 and ascribed a replacement value of US$39.6 million.

The plant has three potential revenue streams: the production of electricity and steam, and gold roasting. Subject to receipt of a competent person's report, it is expected that the plant will require approximately US$4.5 million of investment to restart production of steam and power.

"We are pleased to secure our 30% ownership of LBR on favourable terms upon the initiation of its strategy to create a vertically integrated South Africa gold business,” said Daniel Maling, managing director of Metals One.

“For an investment of US$1.8 million, Metals One will own a 30% interest in a plant which would otherwise cost US$39.6 million to build - with a cost of just US$4.5 million to put it back into operation as a low-cost provider. The next step is to cement LBR's plan to acquire the Vantage Goldfields assets in the Barberton region with a historical resource inventory of 4.5 million ounces of gold, a central metallurgical complex and extensive underground development. LBR's advancements with the plant, in combination with the progress on the acquisition of the Vantage assets makes this an exciting time for Metals One as 30% owner of and senior secured lender to LBR.”

 

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The plant is now in place, so it’s all eyes on the creditors meeting next week, at which the future of the Vantage gold assets and their 4.5 million ounces is decided. If these assets also end up inside Lions Bay Resources, as is hoped, then Lions Bay will be well on the way to becoming a significant player in the South African gold scene, with Metals One holding a major stake.