https://www.miningweekly.com

VGSA encourages SSC to conclude business rescue process for Lily, Barbrook mines

7th February 2019

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

Vantage Goldfields South Africa (VGSA) says it is keen to complete the sales agreement with Flaming Silver and Siyakhula Sonke Empowerment Corporation (SSC) “as a matter of urgency in order to provide clarity and finality for all affected parties, but particularly former employees, creditors and the local community”.

VGSA in November 2017 agreed to sell the Lily and Barbrook mines, in Mpumalanga, to Flaming Silver on the condition that it provide R310-million to discharge business rescue plan requirements and reopen the mines.

Although the Department of Mineral Resources has recently approved the sale and transfer of the mines to Flaming Silver and its parent company SSC, the sales agreement will only be concluded once the business rescue process is completed.

Until then, VGSA remains the shareholder of record of the Vantage companies.

The complicated business rescue process has had four extensions granted over 12 months, but VGSA says it “remains committed to fulfilling its reciprocal contractual conditions” and to working with Flaming Silver, or SSC, to finalise the arrangements that include how and when the company’s employees and stakeholders can expect to receive payment.

VGSA adds that it will continue the process whereby the amended business rescue plans are prepared and completed, and the mines are reopened.

“This is vitally important, as it is the fundamental reason for the agreement being concluded,” VGSA says.

SSC earlier this week said it would soon resume operations at the mines after having started a process to recruit new employees earlier this year.

In a January 25 statement, SSC indicated that it would soon submit a new business rescue plan. The group has, however, in recent months expressed dissatisfaction with the appointed business rescue practitioner (BRP) and was seeking his removal and the appointment of a new BRP.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION