High Court dismisses Vantage’s leave for appeal in business rescue case

8th February 2022 By: Donna Slater - Creamer Media Chief Photographer and Senior Contributing Editor

Vantage Goldfields’ application for leave to appeal the case for the business rescue of the Lily and Barbrook mines, in Mpumalanga, was dismissed with costs to the miner on February 3 by Judge President Francis Legodi in the High Court in Mbombela.

The opposing company seeking the business rescue rights over the mines – Arqomanzi – says in a February 7 statement that Vantage’s grounds for appeal were that Legodi erred in all aspects of his judgment dated October 26, 2021.

Vantage CEO Mike McChesney says the company is considering its options regarding taking an appeal case to the Supreme Court of Appeal (SCA).

Arqomanzi points out that Legodi’s judgment ordered, among other things, that the mining rights held by Mimco (the Lily mine operator up until the time of the February 2016 collapse) and Barbrook are not capable of being exercised under the previously-adopted business rescue plans until such time that Section 11 consent has been obtained from the Department of Mineral Resources and Energy.

In addition, Arqomanzi claims to be an independent creditor of Vantage Goldfields to the value of R375-million and to Barbrook with R172-million.

During the appeal hearing, Arqomnazi says Legodi stated that there were no reasonable prospects of success on appeal and that there were no other reasons to grant leave to appeal.

However, despite Legodi’s dismissal of Vantage’s appeal, Arqomanzi says that, on February 4, an attorney of Vantage informed Arqomanzi of its instruction that the SCA “should be petitioned for leave to appeal”.