Metals One (LSE:MET1) has announced its plans to acquire Lions Bay Resources Proprietary (LBR), targeting gold concentrate production at the Barbrook Gold Mine within six months of a restart.
Under a binding term sheet, Metals One would buy LBR interests it does not already own, making LBR a wholly owned subsidiary.
The deal replaces a June 2026 structure where Lions Bay Capital (TSX:LBI) was to acquire 100% of LBR. Lions Bay Capital has 39.27 million shares on issue and a market capitalisation of about C$12.57 million ($12.78 million).
The transaction gives LBR’s South African gold and power business access to capital markets to support the Barbrook restart.
Barbrook, in Mpumalanga province, carries a historical gold resource of 2.1 million ounces, an existing processing plant, and supporting infrastructure. A phased restart plan aims for initial gold concentrate production within six months using that infrastructure.
LBR also owns a co-generation plant in Newcastle, South Africa, featuring a six-megawatt steam turbine with an independently assessed replacement value of US$39.6 million. The plant may offset Barbrook’s power requirements.
LBR’s acquisition of Barbrook under a business rescue plan awaits a final court judgment following proceedings on 12 October 2026.
Subject to completion and customary approvals, former Harmony Gold (NYSE:HMY, JSE:HAR) CEO Graham Briggs will become Metals One chairman, while Lions Bay Capital Executive Chairman John Byrne will join as a non-executive director.
Daniel Maling continues as CEO, with Fungai Ndoro and Alex King as non-executive directors.
LBR chief executive Lloyd Birrell says the deal gives the business “a listed home to support the restart of Barbrook”.
“With Graham Briggs proposed as chair and our operating team in place, we are focused on completing the business rescue process and bringing Barbrook back into production. We thank Metals One, [Lions Bay Capital], and Salamander for their support in building LBR to this point,” Birrell says.
Metals One CEO Maling describes the deal as ‘transformational’.
“This acquisition positions Metals One at the forefront of the South African gold mining opportunity, with a first-class operating team and the former CEO of South Africa’s largest gold producer as our chair,” Maling says.
“We look forward to updating our shareholders as we progress what we believe to be an exceptional opportunity to create value for all stakeholders from assets which have enormous potential but have been out of action for a number of years.”
Metals One is a London-listed mineral explorer and developer focused on precious and critical metals, with direct and indirect project interests across the US, Finland, Norway, Peru, Tanzania, and South Africa.
Write to Paula Fabe at Mining.com.au
Main image: Metals One
