Source: Sharecast
The AIM-traded company, which holds a 30% stake in Lions Bay Resources (LBR) with an option to increase that to 49.9%, said creditors approved LBR’s offer to acquire certain Barbrook assets, including a historical 2.1 million ounce gold resource, for ZAR 279m (£12.58m), equivalent to around $17m.
Under the approved plan, LBR would settle staff claims in full, while creditors will receive 10% of their approved claims upfront, with the remaining 90% payable following the transfer of mining rights under Section 11 approval.
Initial payments would be funded from escrow cash, with the balance expected to be covered through funding proposals currently under consideration.
Metals One said LBR had received an indicative confidential proposal to fund the remaining acquisition costs and initial mine start-up capital, while discussions with other potential funding sources were ongoing.
The firm cautioned that completion of the transaction remained subject to satisfying several conditions, including regulatory approvals, the settlement of creditor claims and the execution of definitive agreements.
Separately, the meeting of creditors for Makonjwaan Imperial Mining Company, another target asset, had been adjourned to 8 May following a motion by a creditor.
The group also highlighted ongoing legal proceedings relating to the Vantage Goldfields assets, including Barbrook and Mimco, where certain parties were seeking to convert business rescue proceedings into liquidation and remove the business rescue practitioner.
While a South African court had suspended these proceedings for three months to allow the LBR offer to be considered, Metals One warned that any adverse legal outcome or challenges from dissenting creditors could impact completion and LBR’s future performance.
At 1222 BST, shares in Metals One were down 0.58% at 1.65p.
Reporting by Josh White for Sharecast.com.
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