Metals One advances South Africa gold mine restart amid legal dispute

(Alliance News) - Metals One PLC said on Friday that it has finalised the phase one plan to restart the Barbrook gold mine in South Africa, with first gold concentrate production expected within six months.

The three-phase plan, operated by Lions Bay Mining Proprietary Ltd and backed by Metals One, aims to restart the Barbrook gold mine, in the province of Mpumalanga, South Africa.

Barbrook holds a mining authorisation over 2,286 hectares and includes around 2.1 million ounces of historical underground gold resources, as well as substantial surface oxidised and refractory material, an existing processing plant, tailings facilities and supporting infrastructure.

As part of phase one, Metals One expects to produce its first gold concentrate within six months using the existing infrastructure.

Metals One said Lions Bay Mining and a "reputable global trading company" had signed a deal covering 100% of Barbrook's gold concentrate production for an initial three-year term for phase two production.

The development comes as Lions Bay Capital Inc is expected to acquire 100% of Lions Bay Resources Proprietary Ltd, which owns Lions Bay Mining, bringing the Barbrook and Vantage gold projects, both located in South Africa, under the same corporate structure. In return for giving up its existing 30% stake and option to acquire a further 19.99% in Lions Bay Resources, Metals One would receive 72.0 million Lions Bay Capital shares.

However, the company continues to face legal challenges. Goldstream Pty Ltd, a creditor of Barbrook, has launched court actions seeking to remove the business rescue practitioner and set aside the Lions Bay plan.

Hearings are scheduled for September and October.

Metals One said previous legal challenges have been defeated and that it remains confident the plan will proceed.

It added that the acquisition agreement has been concluded and the application to transfer the mining rights has been submitted to South African authorities. Financing is also progressing, with LBR expected to satisfy funding conditions before the mining rights are transferred and the litigation is resolved.

Metals One shares jumped 12% at 1.40 pence on Friday afternoon in London.

By Camilla Borri, Alliance News reporter

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