Vancouver, British Columbia–(Newsfile Corp. – September 14, 2020) – Lions Bay Capital Inc. (TSXV: LBI) (“Lions Bay” or the “Company”) announces that it has entered into a heads of agreement with Salamander Mining International Limited (“Salamander”) under which LBI will have the right, subject to various conditions, to acquire an interest in a South African gold mine and milling complex. The companies that currently own the mines and mills are under bankruptcy protection and Salamander is a major creditor. Salamander has submitted a proposal to the administrator under which operations would resume and Salamander would acquire the assets. The operations were put into protection following an accident in 2016. The mines were operating profitably at the time at a gold price of USD $1,300 an ounce.
Salamander Mining is an unlisted company based in Mauritius. The co-founder and CEO of Salamander, Lloyd Birrell, is a veteran of the South African gold mining industry. Mr Birrell has been a key member of management teams that has successfully acquired, restructured and recommissioned gold assets and restored them to profitability. These include:
- Ergo (the world’s largest tailings operation)
- Agnes Mines now known as Galaxy Mines
- Transvaal Gold Mining Estates
- Bosveld Mines
The other co-founder and CFO of Salamander, Deon Robbertze, has more than 20 years of experience at senior management levels including Financial and Commercial Manager at Kumba Base Metals and Chief Financial Officer at Xtrata South Africa (now part of Glencore).
Under the heads of agreement, LBI will be mandated to arrange the funding required to acquire and restart the mines. It is anticipated that the amount required over 6 months will be less than USD $5 million. To secure the funding mandate, LBI will be obliged to arrange a USD $1 million loan. This is conditional on Salamander reaching an agreement with the Business Rescue Practitioner and certain other creditors.
Lions Bay has been actively seeking gold opportunities over the past six months. During the period it has significantly increased its holding in Fidelity Minerals Corp. (TSX-V: FMN) which has been restructured and holds a number of very promising gold assets in Peru.
The executive chairman of Lions Bay, Mr. John Byrne commented: “The Salamander transaction represents an extraordinary opportunity to join with a team that has the potential to build a major gold production enterprise in a very short space of time. As soon as the conditions precedent are satisfied an independent expert report will be completed. It is anticipated this could be completed in six weeks.”
About Lions Bay Capital Inc.
Lions Bay Capital Inc. is a TSX-V listed Investment Issuer that is focused on high return investment opportunities, principally in the mining, clean energy and clean technology sectors, where it provides public and private companies with strategic and financial support.
On behalf of the Board of Lions Bay.
Tel: +61 3 9236 2800
For more information, please visit the corporate website at www.lionsbaycapital.com or contact the above.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “will”, “plan”, “intends”, “may”, “will”, “could”, “expects”, “anticipates” and similar expressions. Further disclosure of the risks and uncertainties facing Lions Bay and other forward-looking statements are discussed in Lions Bay’s Management’s Discussion and Analysis which is available under the Company’s profile on www.sedar.com.
Forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, for the Company and the companies it is invested in, but are not limited to, commodity prices, fluctuations in revenues and expenses, need for additional funding, availability of such additional funding and that funding will be on acceptable terms, retention of key employees, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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