Lions Bay Capital Inc. Provides an Update on the Loan and Option Agreement with Salamander Mining International Ltd.
Vancouver, British Columbia--(Newsfile Corp. - October 1, 2021) - Lions Bay Capital Inc. (TSXV: LBI) ("Lions Bay" or the "Company") announces that it has advanced USD $510,000 to Salamander Mining International Ltd. ("Salamander") as part of the previously announced loan and option agreement (see news release on June 17, 2021) of up to USD $1 million it has agreed to provide. Lions Bay expects to provide a minimum of a further USD $300,000 over the next few months which will enable Salamander to commission a new plant capable of processing 20,000 tonnes a month of gold tailings. Should Lions Bay advance the full USD $1 million it will be entitled to 25 per cent of the cash flow in addition to priority repayment of the loan. If only USD $800,000 is advanced the Lions Bay share of cash flow will reduce to 20 per cent. The plant is expected to be commissioned by December 2021.
Salamander has also advised that it expects to commence trials on the production of magnesium sulphate from the tailings of the Havelock chrysotile asbestos mine this month. This work will form part of the competent persons report on the Kobolondo project at Bulembu in the North-west of Eswatini. Salamander holds a 50 per cent interest in Kobolondo Mining Eswatini (KME) with the remaining 50 per cent owned by the Government of Eswatini. KME has been granted a mining lease to rehabilitate the tailings and extract, process and upgrade commercially viable minerals of magnesium, nickel and iron over 20 years.
KME plans to do this by erecting a roaster plant to treat sulphur rich concentrates. The roaster has the potential to unlock the economic potential of massive refractory gold reserves in South Africa, Zimbabwe and Eswatini. Almost all the roasters in South Africa have been closed for environmental reasons. KME plans to convert the sulphur dioxide gas from its proposed roaster into low cost sulphuric acid and then use this acid to leach the magnesium and other minerals from the magnesium sulphate tailings. An orphanage which currently occupies the old township adjacent to the asbestos tailings facility. The Salamander plan envisages a new orphanage being built prior to the operation of the roaster and magnesium sulphate leach plant. It is planned to have a conceptual economic model for review in the next three months and this will form the basis for the public listing of Salamander. As previously advised, Lions Bay has been mandated to assist with this and has an option to acquire 20 per cent of Salamander for USD $2 million. It also has an option to acquire 100 per cent of Salamander by issuing 100 million common shares of Lions Bay.
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.
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