Solidarity's claims are 'spurious' - AfroCan

The Vantage Goldfields’ Lily Mine at Barberton, Mpumalanga, were three miners are trapped underground for over a month, Three trapped miners were in a container that fell into a sink hole. Picture: Itumeleng English 10.03.2016 972

The Vantage Goldfields’ Lily Mine at Barberton, Mpumalanga, were three miners are trapped underground for over a month, Three trapped miners were in a container that fell into a sink hole. Picture: Itumeleng English 10.03.2016 972

Published Jul 4, 2016

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Johannesburg - Canada-based AfroCan on Monday denied Solidarity's claims that it had left Lily miners in the lurch.

Trade union Solidarity lashed out at AfroCan Resources Gold for allegedly reneging on an investment in Lily Mine that would see miners finally get paid.

In a strongly-worded statement issued on Monday, the union alleged the Vancouver-based company has not paid an agreed upon $2.5 million as part of a $11 million investment to the mine by the June 30 deadline.

The union also alleges that AfroCan CEO Brian Barret has let many similar transactions run aground.

However, AfroCan says this is not true, and certain statements are mere spurious allegations.

It adds it has issued a formal communication to Lily owner, Australia-based Vantage Goldfields, which sets out its position.

Lily Mine was placed under business rescue, putting 900 jobs on the line, after a cage housing collapsed in February. It has yet to recover three bodies trapped underground, but had agreed to sink a 500 metre decline shaft in a latest bid to get to the container in which the mineworkers are trapped.

Read also:  Miners left out in the cold

In May, AfroCan and Vantage announced that AfroCan would invest $11 million over two months into Vantage, which owns Lily and Barbrook Mines in the Barberton Goldfield.

In a statement, the companies said a portion of AfroCan's investment will be allocated to reopening of the Lily Mine, while the balance will be used to expand production at Barbrook Mine.

The Lily Mine will benefit significantly as a result of this investment by AfroCan, and "can now proceed to secure additional post commencement funding ensuring that the mine can be back in production as soon as practically possible. The reopening of the mine is expected to take place in 6 to 8 months."

However, Solidarity alleges the promises never materialised.

"Two weeks ago, Barret addressed the Solidarity, Amcu and the Lily Mine leadership at the Nelspruit Head Office of Vantage Goldfields, making all kinds of promises and creating many expectations, none of which materialised," Gideon du Plessis, the union's General Secretary, says.

"Based on Barret's "investment" and promises a large number of workers had entered into agreements with their creditors to the effect that they would be able to settle some of their debt this week. The outcome is that even more workers would now be facing sequestration," Du Plessis adds.

"As representatives of the workers, Solidarity and Amcu will not let the matter rest ... this fraudulent transaction now means that negotiations with other investors, who had shown an interest previously, would have to start afresh - thus delaying the process to find a reputable investor by months," Du Plessis adds.

IOL

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