City Press reports that a deal by a local minerals and investment company to buy the cash-strapped Lily and Barbrook mines is mired in controversy and could collapse before the end of this month.
Siyakhula Sonke Empowerment Corporation (SSC) has entered into a binding agreement to acquire 74% of Vantage Goldfields SA, which owns the mines near Louieville in Mpumalanga. SSC is, however, still trying to raise the funds needed to take the mines out of business rescue. Vantage sold the shares to SSC for a nominal fee of R1. To complicate matters, on 29 January, a court will hear an application by creditors to have the mines liquidated. They are adamant they will only withdraw their application if the mines are reopened before the court date. Lily Mine was placed under business rescue in March 2016 and Barbrook followed suit in December of that year. Since then, business rescue practitioner Rob Devereux has struggled to get investors to reopen the mines. Lily Mine was shut down when part of it collapsed on 5 February 2016. Three employees and the container they were working in on the surface fell into a huge sinkhole and were buried under tons of rock. Their bodies have still not been recovered. About 1,000 workers were laid off. Barbrook, a sister mine that depended on Lily’s operations, experienced financial distress and was shut down as well.
- Read this report by Sizwe Sama Yende in full at Fin24
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