Bosveld Gold Debt Loan

Lions Bay Capital currently has a US$2.3 million loan to GNT Mining which owns the Bosveld gold mine in South Africa. The Bosveld mine has a 60,000 tpa CIP gold treatment plant and is currently operating as a toll treatment facility. Plans are being prepared to refurbish the old mine.

Preliminary analysis suggests that US$4 million will be required over 2 years to complete the refurbishment and return the mine to underground production of 60,000 tpa which at current prices would generate an estimated US$15 million a year.

Under the agreement with GNT, the loan is to be secured by the tailings of the mine.