Lions Bay Capital Inc. Provides Update on Proposed Acquisition of South African Gold Interest
Oct 9, 2020
(TSXV: LBI) (“Lions Bay” or the “Company”) announces they have been advised by Salamander Mining International Limited (“Salamander”) that Salamander’s proposal to acquire a group of gold assets in South Africa currently under the control of a Business Rescue Practitioner has been distributed to the creditors for consideration. The assets are owned by subsidiaries of Vantage Goldfields Ltd (“Vantage”). Vantage was listed on the Australian Stock Exchange up until early 2015 and its annual reports and presentations are on the public record. A number of South African subsidiaries of Vantage were placed in business rescue in 2016 following a tragic accident at one of the mines that resulted in the death of three employees. In a news release on September 14, 2020, Lions Bay advised it had entered into a heads of agreement with Salamander which will give the Company the right to acquire up to a 50 per cent interest in any assets acquired by Salamander under its proposal. Any definitive agreement will be subject to TSX-V approval. In December 2017, Salamander entered into an agreement with the Business Rescue Practitioner which provided for Salamander to re-treat residues from the mines. The Business Rescue Practitioner and the companies he administers were unable to perform under the terms of the agreement and as a consequence Salamander instituted a multi million dollar post commencement claim for expenses incurred and damages suffered. Salamander is in a position to significantly increase the quantum of damages claimed and approach the South African High Court for relief. Salamander has said it is prepared to waive these damages if its offer is accepted. Any offer will ultimately require support from various parties and could result in protracted legal action. There is no certainty that Salamander will be successful in its endeavours and there are a number of potential outcomes. Salamander has other mining assets and under its heads of agreement Lions Bay will be mandated to assist in taking Salamander public. 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. John Byrne