HomeBusiness and policyLily and Barbrook Mines takeover delayed as court battle continues

Lily and Barbrook Mines takeover delayed as court battle continues

The Siyakhula Sonke Empowerment Corporation and its subsidiary, Flaming Silver Trading 373, collectively known as the SSC Group hereby give an update in light of a judgment handed down on 17 July 2019 at the Mbombela High Court.

The case regarded the matter of Flaming Silver compelling specific performance from Vantage Goldfields SA in respect of a sale of shares agreement for the Lily and Barbrook Mines.

During the court appearance on 9 July 2019, former Flaming Silver director, Ferdi Dippenaar’s argument centered around an amendment to Dippenaar’s intervention application following the dismissal of his original application.

Dippenaar sought relief for the resolution that was taken by the directors of Flaming Silver to ratify the signing of the fourth addendum to the sale of shares agreement, to be declared null and void.

Also brought before the court on the day, was the main application brought by SSC Group to compel VGSA to transfer the shares and other relevant documentation in terms of the sale of shares agreement.

Presiding over the matter, Judge AJ Roelofse, made a finding that the ratification be declared null and void and, consequently, that SSC Group’s main application be dismissed.

The dismissal of SSC’s application is a consequent effect of the ratification being declared null and void due to the fact that the non-existence of the fourth addendum results in a lapsing of the sale of shares agreement and the transaction is therefore no longer in force and effect.

As a result, no decision needed to be made on the main application.

“We will apply for leave to appeal this judgment and it is important to note that we did not lose this case based on the merits of our main application, but as a result of the judgment granted in favour of Ferdi Dippenaar’s intervention application,” SSC CEO Fred Arendse.

Once this application is lodged, the judgment handed down will be stayed until the appeal process has been finalized.

“We are surprised by the judgment handed down, but we will not give up. In the interest of the communities, ex-employees and, most importantly, the three affected families, the SSC Group remains focused and will not get distracted.

“This judgment made no mention of the lack of funding and any other merits of the main application, but this is as a result of its automatic dismissal given the impact of Dippenaar’s intervention application” adds Arendse.