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Vancouver, British Columbia–(Newsfile Corp. – June 10, 2022) – Lions Bay Capital Inc. (TSXV: IJC) (“Bay of Lions” or the “Company“), announces that the value of the Company’s listed investment portfolio for the fiscal year ended May 31, 2022 was $10.9 million or an investment value of $0.08 per common share of the Company These figures exclude the Company’s portfolio of financial derivative instruments and unlisted equity investments to which Lions Bay provides seed for possible public listing.
“Lions Bay’s active involvement in the development of business plans, financings and leadership appointments is an integral part of the Company’s business model,” said Mr. Byrne. “In less than 4 years, we have accompanied the transformation of five companies. One of our first investments was Jervois Mining which, in the space of 4 years, has grown from a company of 5 million dollars to more $900 million.”
Lions Bay made profits on two of its main investments, Elementos Ltd. and South Hartz Potash, but retains significant stakes in both. Profits were used to reduce debt and increase overall gold exposure. Lions Bay’s principal investment now consists of a stake of 41.3 million common shares with a fair value of $4.3 million as of May 31, 2022 and 9.5 million warrants in Fidelity Minerals Corp. ., listed on the TSX-V. Fidelity is increasing its stake in the Las Huaquillas gold project in Peru from 45% to 50% by funding a US$3 million exploration program over the next six months. Las Huaquillas hosts a historic resource of 446,000 ounces of gold and 5.3 million ounces of silver in a broad mineralized zone extending from surface to 200 meters within 500 meters of a 2, 5km. This epithermal zone is flanked by two large confirmed porphyry intrusions with ore-grade copper/gold intersections. (See press release issued by Fidelity Minerals Corp. on January 6, 2022 for description of work performed and disclaimers) Lions Bay has helped Fidelity overcome long-standing disputes that have prevented exploration of the region over the past 20 years. Lions Bay Executive Chairman, Mr. John Byrne, said: “The Las Huaquillas project is one of the most attractive exploration targets in Peru and we expect underground exploration and drilling to generate a significant interest in Fidelity over the next six months.
Lions Bay’s second largest stake is in Elementos Ltd. As of May 31, 2022, Lions Bay owned 4.5 million shares with a fair value of $2.8 million. Elementos is currently completing a bankable feasibility study on the Oropesa tin deposit in Spain. Permitting is at an advanced stage and development is expected to begin in 2023. Lions Bay has been actively involved in the acquisition of Oropesa for Elementos and early fundraising.
Lions Bay continues to hold 167 million shares and 54 million warrants in Parkway Minerals Ltd; 51 million shares and 8.6 million warrants in Kalina Power Ltd; and 5.7 million shares in South Hartz Potash. Parkway Minerals was recently awarded a contract by Queensland Gas, a Shell Group company, to carry out a feasibility study using its proprietary technology to process and recover salable products from liquid wastes associated with coal gas production. It is also looking to use its technology on mining waste and tailings. “Parkway is in the right place at the right time,” Mr. Byrne said. “We expect substantial appreciation in its valuation over the next six months.”
Next year should also mark a turning point for Kalina Power Ltd. as it prepares to build the first of several heat recovery power generation projects using its proprietary technology in Alberta. The scale of this opportunity is huge and again, it’s a business in the right space at the right time.
South Hartz Potash recently completed two confirmatory drillings on the first of three major potash projects in Germany. This will allow the company to deliver economic models on the project and pave the way for negotiations with potential partners. The strength of the potash market and location puts South Hartz in a strong position to generate strong shareholder returns.
Lions Bay continues to evaluate and invest in creating new opportunities. For almost two years, the Company has been working with Salamander Mining International, a private company based in Mauritius, to finance the construction of a gold roaster in Eswatini. Environmental concerns associated with sulfur dioxide emissions have forced the closure of most roasters in South Africa, rendering the mining of millions of ounces of gold in the Barberton area unprofitable. Salamander has entered into a conditional agreement with the government of Eswatini to build a roaster and convert sulfur dioxide emissions into sulfuric acid. The acid will then be used to leach magnesium from asbestos tailings from a former mine. To date, Lions Bay has loaned Salamander US$0.7 million and a portion of these funds have been used to confirm the flowsheet. Lions Bay is currently in negotiations to provide additional funding to complete the feasibility study and list Salamander on a major exchange. The preliminary figures are very encouraging and the project has significant potential to improve the value of Lion Bay.
During the year, Lions Bay entered into a farm deal with Savic Pty Ltd to earn up to 50% interest in a promising rare earths project in Western Victoria Australia by spending $5 million Australians over 3 years. Savic’s land is a continuation of that held by Australian Rare Earths which announced the discovery of rare earth reserves and is currently carrying out mass testing of its deposit. Initial exploration by Lions Bay proved that Australian Rare Earths’ rare earth discovery extended to Savic soil. A second phase of drilling to determine a grid for reserve definition drilling was recently completed by Lions Bay and results are expected in approximately 4 weeks.
Lions Bay management has had discussions with several companies interested in acquiring its interest in the joint venture and these discussions are expected to continue with our partners over the coming months.
Lions Bay also provided seed capital to Epic Minerals Ltd. which plans to list on the ASX next year. Epic owns several gold and tin projects in Queensland, Australia, and is managed by Mr. Chris Gregory, a highly accomplished and resourceful mining executive with over thirty years of global experience in corporate capabilities, exploration and exploitation. Mr. Gregory has a proven track record of success in small to large-scale organizations across a wide range of global jurisdictions and cultures.
About Lions Bay Capital Inc.
Lions Bay Capital Inc. is a TSX Venture Exchange listed investment issuer focused on high yield investment opportunities primarily 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 Lions Bay Board of Directors.
Tel: +61 3 9236 2800
E-mail: [email protected]
For more information, please visit the company’s website at www.lionsbaycapital.com or contact the people above.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS ITS TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE RELEVANCE OR ACCURACY OF THIS RELEASE.
Disclaimer and Forward-Looking Statements: This press release contains forward-looking statements. Forward-looking statements are statements that relate to future events or future financial performance. In some cases, you can identify forward-looking statements by using words such as “may”, “should”, “intend”, “expect”, “plan”, “anticipate”, “believe”. , “estimate”, “project”, “predict”, “potential” or “continue” or the negative form of these terms or any other comparable terminology. These statements speak only as of the date of this press release. This press release may also contain inferences to forward-looking financial information (“FOFI”) within the meaning of applicable securities laws. The information in this press release has been prepared by our management to provide readers with an overview of our future activities.
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