The South African gold developer listed in Hong Kong made a conditional binding offer to the joint business rescue practitioners (BRPs) of Vantage Goldfields, Makonjwaan Imperial Mining and Barbrook Mines to acquire the mines in Mpumalanga.
It said if successful, the shareholding of the new venture would be itself, Siyakhula Sonke Empowerment Corporation (SSC).
Chief executive Neil Herrick said their offer was a viable alternative for the troubled mines. “Some of these assets have been in business rescue for more than three years and, earlier, the original business rescue plans were declared to have failed,” he said. “Given the two mines’ troubled history and the ongoing litigation relating to them, we believe our offer to the BRPs represents a viable alternative to deliver value for key stakeholders relatively quickly through the formulation and implementation of new business rescue plans.” Herrick could not disclose the amount of the bid.
Lily mine, currently owned by Australian company Vantage Goldfields, halted operations in Barberton following the ground fall incident in February 2016 in which three workers were trapped and whose bodies are yet to be retrieved.