HomeGoldFight for Lily mine is over

Fight for Lily mine is over

The battle of who will take ownership of Vantage Goldfields’ Lily and Barbrook mines is completely over, with no more hurdles left between now and reopening Lily mine.

Siyakhula Sonke Corporation (SSC) subsidiary, Flaming Silver, the company that was originally looking to acquire the assets and reopen them was denied the application for leave to appeal the decision to sell the mines to Real Win Investments.

The judgement was handed down at the end of last week in the Mbombela High Court.

The judgement finally paves the way for Vantage Goldfields to deal with its assets without interference and frees the company to complete the sale of its wholly owned subsidiary, Vantage Goldfields SA (VGSA), to Real Win Investments.

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The agreement was signed on 12 March 2019 on a conditional basis pending the unwinding of the failed agreement between VGSA and Flaming Silver/ SSC.

“Naturally we are delighted with the judgement because it confirms our long held view that dealing with SSC CEO Fred Arendse or any of his companies would never result in a positive outcome for creditors and communities. As the owners of the mines we are free to deal with them as we wish. After 21 months of unfortunate delays the business rescue process can now be completed and the mines re-opened,” says CEO of Vantage Goldfields Mike McChesney.

“We can now put the Flaming Silver/SSC chapter behind us and concentrate on completing the transactional requirements for the sale of VGSA to Real Win.

Real Win is a new special purpose vehicle formed by founding shareholders Pius Mokgokong, Zandile Mdanda and Lindani Dhlamini. As the outgoing shareholder we are satisfied that they have the necessary qualifications, experience and financial capability to make a success of the VGSA and the South African assets including Lily and Barbrook in the future.”

“Since the announcement last week by Real Win that they will become the new owners of VGSA and the South Africa assets we have received overwhelming support. Creditors, ex-employees and community members are pleased that, finally, we have presented them with a credible option for the re-opening of the mines.”

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Vantage Goldfields and the VGSA directors will continue to work with the joint Business Rescue Practitioners and the Real Win team to provide a rapid exit of the business rescue process. An independent due diligence exercise will be completed in the coming weeks and the investment process and approvals in the following months ahead with a view to a creditors meeting prior to completion of the transaction.

“Vantage Goldfields has only ever had one objective in mind and that is to complete the business rescue process and re-open the mines. That is why I’m still here,” McChesney concludes.