Projects

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Lionsbridge differentiates our self in providing our clients world class solutions to all aspects of corporate management –the quality and depth of our service is developed from significant experience in both the ownership and management of natural resource Companies throughout the world.

Black Dragon Gold Corp. (TSX-V:BDG)

Lionsbridge entered into an agreement with Rand Merchant Bank Australia Holdings (‘RMBAH’). Under the agreement Lionsbridge were granted an option to purchase, assign repay or otherwise extinguish the USD 10 million debt financing on the company’s balance sheet. At the time the company, Astur Gold, were at risk of being subject to receivership procedures. After purchasing the option, it became apparent to Lionsbridge that there was no market support for the restructure unless Lionsbridge inserted a management team to manage the process.

Over a period of two years Lionsbridge finalised the option agreement, entered into a binding management agreement approved by the shareholders of the Company, changed the corporate entities name to Black Dragon Gold, garnered considerable market support, met with and built relationships with the permitting authorities in Asturias and Madrid and raised a total of approximately $10 million.

After the 24 month period Lionsbridge handed management to the incoming financiers. At the time of completion

• The RMBAH agreement was settled in full including both papering the transaction and ensuring the relevant payments were funded;
• The major creditors had been repaid;
• The Spanish subsidiaries were brought to a going concern and a working relationship rebuilt with the local permitting authorities;
• All core was located and accounted for and a confirmatory technical report published; and
• A board was installed with expertise in permitting in Spain and exploration activities with sufficient capital to progress the project.

KBL Mining Ltd (ASX:KBL)

KBL asked Lionsbridge to raise funds for the reinstallation of the CIL Plant at their Mineral Hill mine in Central NSW in 2014. At the time KBL was suffering from a stressed balance sheet as a result of a significant debt burden and an inability to profitably take advantage of the value of the Mineral Hill asset. Lionsbridge worked closely with KBL on options to raise the finance. It was identified that KBL needed new management and a company refresh. In July 2014 Lionsbridge took over management of KBL through the seconder of Brian Wesson as the Managing Director thereof. Since that time, USD 23 million has been raised from a US based Resource Finance Company to relieve the balance sheet issues, the CIL Plant is under construction, various upgrades to the processing facility are under way and the Company is positioned to unlock the significant value of its Mineral Hill asset.

Woulfe Mining (TSX-V:WOF)

Lionsbridge (through our partner company) took over Oriental Minerals in 2009, at the time the Company had a market valuation of CAD 4 million and was on the brink of bankruptcy. We offered them a complete Management Solution under which we took over corporate management of the whole entity. We raised an initial $6.6 million and began to renew the company by refreshing its image, carrying out a resource estimate, initiating a PEA, drilling the project and taking it to feasibility with an NPV of $465 million and an IRR of 46%. During the 36 months we managed Woulfe Mining we trained local staff, developed a tunnel onto the ore body and carried out initial design and construction for tender. Additionally, we installed a new management structure and personnel from the Board of Directors down to the mine site. On exiting Woulfe Mining, the company was worth some $110 million, had signed definitive strategic agreements with IMC(a Warren Buffet Company), had investments from large companies such as Korean Zinc and Dundee Capital and had Shinhan Bank ready to fund the company’s debt requirements. Having realised a significant portion of the assets value and set up the Company to extract significantly more value we exited to allow Dundee Capital to take management forward.

Woulfe Mining was awarded the best performing mining stock by the TSX-V and was the best performing stock on Colonial First States Portfolio.

Vatukoula Gold Mine (AIM:VGM)

Lionsbridge (through our wholly owned vehicle Westech Gold) purchased Vatukoula Gold Mine from Durban Rooderport Deep (DRD) for the company’s debts of around $30 million. Vatukoula was previously owned by an Australian listed entity Emperor Gold Mines (EGM). DRD purchased the project from EGM for $105 million. However, DRD could not successfully run the project. The project suffered from high costs associated with excessive expatriate staff, the high union participation rate on the project, the nature of the asset requiring disciplined mining, the failure of negotiations with the military government and excessive absenteeism. We purchased the Company and over 18 months restarted the mine pouring gold, retrained and consolidated the workforce from 2200 to 700 entirely Fijian staff and reopened three shafts. We installed a significant management structure to manage the human resources and administration of the company, raised significant funds to fund the operations and coordinated and managed a listing on the AIM exchange. The asset was sold to the vehicle for in excess of $50 million and was worth some GBP 80 million on listing. Having refinanced, restructured and renewed the company we installed new management to move the project forward.

Our success at Vatukoula can be measured by the significant increase in value realised, the effective management in the face of risks (operational, sovereign and market) or in winning the support of the government and voluntary disbanding of the unions due to successful human resources policies.