Judgement was handed down in the Mbombela High Court on 17 July 2019 in the matter between Flaming Silver and Vantage Goldfields SA, or VGSA.
According to VGSA, the ruling on Case No 859/2019 states that “Sale of Shares Agreement of 1 November 2017 is declared null and void” and that “Prayers 2 to 4 of the Notice of Motion in the main application are dismissed”.
“Flaming Silver is therefore ordered to pay the respondents' costs in the main application,” a press release by VGSA states.
“The judgement is not only a victory for VGSA but also for all the people who have suffered unnecessarily for the past 18 months.”
“VGSA has been vindicated by this judgement because the funding to re-open the mines was never secured by Flaming Silver/SSC as alleged.”
“VGSA has significant support from the majority of stakeholders including, creditors, ex-employees, the union and importantly the community. Stakeholders have been constantly appraised of VGSA’s primary goal to ensure the re-opening of the group’s mines. In this regard VGSA will be approaching the DMR with a full update and proposal on the way forward.”
As a result of the court judgement VGSA says that it can now move forward with purpose and finalise the funding arrangement in order to complete the business rescue the companies.
The company said that meetings are scheduled with the new investors and the joint BRPs with a view to cementing a new sale agreement for the benefit of all stakeholders.
Read a background news article: here