JOHANNESBURG (miningweekly.com) – New gold-miner Aurora Empowerment Systems has bought the liquidated Pamodzi Gold East Rand assets, Mining Weekly Online can today report.

The hedged East Rand property, the last piece of the stricken Pamodzi Gold group to be bought out liquidation, is the second Pamodzi Gold asset that Aurora has taken up, following the company's acquisition of Pamodzi Gold Orkney for R215-million.

Mining Weekly Online understands that personnel at Pamodzi Gold East Rand's Grootvlei gold mine were informed on October 9 that Aurora, with funding from Malaysian and Middle Eastern investors, would be taking over.

The MD of Aurora is Zondwa Mandela, the grandson of former South African President and global icon, Nelson Mandela, and the Aurora chairperson is Khulubuse Zuma, nephew of the current South African President, Jacob Zuma.

Mining Weekly Online understands that Aurora's takeover of Pamodzi Gold East Rand may be linked to a general consolidation of the East Rand goldfield and may be linked to the activities of other gold-mining companies in the area.

JSE-listed Harmony Gold has paid R405-million for Pamodzi Gold Free State and Mining Weekly Online understands that the joint liquidators have attracted in the region of R1-billion for all the assets, which, if true, would mean that Aurora paid well north of R300-million for Pamodzi Gold East Rand.

The German HypoVereinsbank, which holds the gold hedge over the East Rand gold assets, has been investing funds to keep the wheels of the Grootvlei mine turning.

Mandela declined to comment to Mining Weekly Online on the latest acquisition, but said that a statement would be made in due course, most likely at a media conference.

A source close to the East Rand operations told Mining Weekly Online on condition of anonymity that those East Rand employees who were not on unpaid leave had been informed of new work contracts, and had also been told that they would be paid last month's salary.

The employees were also informed that Aurora would be investing a "significant" amount of capital in Pamodzi Gold East Rand, in order to get the mines operating at full capacity as soon as possible.

Mining Weekly Online was told that long-standing employee, Louis Bezuidenhout, was in line to take the place of resigned former stalwart Pamodzi Gold East Rand GM Graham Chamberlain, who had succeeded in keeping the mine going on a shoestring against fierce odds.

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