Lions Bay Capital Inc. announced that further to the announcements on June 16, 2025 and July 30, 2025, the Company has incorporated a South African company, Lions Bay Resources (Pty) Ltd. ("LBR"), which will hold the purchase option over the KC Energy cogeneration power plant. Currently, Lions Bay owns 49.9% of LBR with the remaining 50.1% held by a management team lead by Mr. Deon Robbertze. Mr. Robbertze and his associates identified and brought the KC Energy opportunity to Lions Bay in return for being carried through the completion of the Competent Persons Report ("CC") on the recommissioning of the plant.
The Final CPR report is expected in the next month. The option over the plant is due to be exercised by December 18, 2025, at a price of USD 1,390,000 of which USD 65,000 has already been paid by Lions Bay. In addition, the Company announced that LBR has entered into an agreement with Metals One Plc ("Metals One") to arrange an up to USD 1,800,000 convertible note ("CN") and to acquire an immediate 5% equity stake which would reduce Lions Bay's interest from 49.9% to 47.39%.
Tranche 2 is expected to be up to USD 1,625,000 and proceeds will be used to exercise the KC Energy cogenerization power plant purchase option. Metals One will earn a 5% equity interest in LBR upon execution of the CN. The CN can be converted into common shares of LBR where assuming the total USD 1,800, million has been advanced, if converted the CN will convert into such number of new shares of LBR as is equal to 25% of the share capital of LBR (the " Conversion Shares").
Following issue of the Conversion Shares taken together with the initial shares Metals One will hold 30% of the issued share capital of LBR on a fully diluted basis. Lions Bay Resources (Pty") Ltd. holds the option to purchase a cogeneration power plant in Kwazulu Natal, South Africa and plans modify it to roast and recover gold from concentrate. The plant produces both electricity and steam and had an original cost of USD 19.4 million to build and commission (built in 2020) and was placed on care and maintenance in 2021 after operating for only one year.
