In a vote of confidence for the distressed Barberton mining industry, Real Win Investments (RWI) has confirmed to Mining Weekly Online that Vantage Goldfields has accepted its conditional offer to acquire 100% of the shares and claims in Vantage Goldfields South Africa (VGSA), the owners of the Lily and Barbrook mines, in Mpumalanga.
While the agreement was signed on March 12, RWI on Friday said that it was now in a position to move forward with the acquisition of VGSA.
VGSA CEO Mike McChesney said that the business rescue process could now be completed and the mines could be reopened. RWI has obtained funding required and has the experience needed to reopen the mines, he added.
The mines went into business rescue shortly after the Lily mine collapsed in February 2016, killing three mineworkers who were trapped in a container underground.
RWI has had extensive engagements with the joint business rescue practitioners and will settle with creditors in accordance with the adopted business rescue plans, the statement said.
RWI CEO Zandile Mdanda, meanwhile, said that RWI had identified the Lily and Barbrook mines as an “excellent investment opportunity” because of the mines having, among others, significant ore reserves.
The RWI team has completed its preliminary due diligence and is satisfied with the results so far, she added.
A full due diligence exercise will now be completed by independent mining consultants and, once successfully completed, RWI will start the process of re-opening the mines.