Critical and precious metals project developer and investor Metals One reports that Lions Bay Resources (LBR), in which it holds a 30% stake, has submitted revised offers to acquire selected assets of gold mining company Vantage Goldfields out of business rescue, as it plans to secure gold resources in South Africa.

LBR has tabled two updated bids to the business rescue practitioner (BRP), including a R279-million offer for the Barbrook Mines assets in Mpumalanga, which host a 2.1-million-ounce gold resource, and a nominal R1 offer for the gold mining company Makonjwaan Imperial Mining Company (Mimco), which includes the Lily mine, in Mpumalanga, and associated deposits totalling 2.3-million ounces.

As part of the Barbrook bid, LBR has undertaken to settle outstanding salary claims for former emoloyees of both Barbrook and Mimco, subject to creditor approval.

The revised offers follow on from the feedback received by the BRP during a creditor meeting to approve LBR’s plan to acquire the Vantage assets. This has prompted LBR to refine its approach with a stronger focus on the Barbrook assets, while accounting for complexities surrounding the Lily mine complex.

LBR's proposed acquisition of the above assets of Vantage out of business rescue has been endorsed by the BRP, the major creditor, and has recently circulated to all creditors.

Further, LBR has previously deposited $10-million in an escrow account with the business rescue practitioner's legal practitioner.

Upon approval of the plan, staff will be paid 100% of their entitlements, less any amounts previously settled by the major creditor. Creditors will be paid 10% of their approved claims and the 90% balance will be paid to creditors once the Section 11 application to transfer the mining rights has been granted.

LBR is also considering confidential offers for project-level financing for the balance of funding required to complete the Barbrook and Mimco acquisitions alongside additional initial mine startup capital.

The revised offers remain subject to the agreement of creditors at the creditors meeting expected to be held on April 16, as well as LBR securing the funding necessary to settle the minimum $7-million required should the offers be approved by creditors.

"Following further constructive dialogue with the BRP and major creditor, LBR has reshaped its offer and looks forward to the outcome of the adjourned creditor meeting reconvened for tomorrow," Metals One MD Daniel Maling comments.