Johannesburg, South Africa — MININGREVIEW.COM — 28 April 2010 – AURORA Empowerment Systems “’ the South African company led by the grandson of Nelson Mandela “’ has signed a financing deal of US$100 million (R750 million) to buy two gold mines from liquidators, and will make a public announcement on acquiring the mines tomorrow.
Miningmx reports that this has been confirmed by an Aurora director, and that liquidator Enver Motala said he had spoken to Aurora’s lawyer Michael Hulley as well as the director, who had told him they had signed documents and that official notification should be forthcoming before today.
Aurora has managed the Orkney and Grootvlei mines since late last year after its bid of R605 million was chosen by the liquidators of Pamodzi Gold’s assets.
However, the company ran into financial difficulties, particularly when its Malaysian financial backers AM Equity terminated their relationship. The black-owned company was unable to pay workers and recapitalise the two old mines. The liquidators gave Aurora until 26 April to come up with the purchase price of the mines or lose the deal.
Aurora has been in talks with an unnamed North American private equity fund, which is apparently fairly well known, says Miningmx.
“We’ve secured funding. We’ll hold a press conference on Thursday where it will be Aurora, the liquidators and the party from America,” said Aurora director Thulani Ngubane.
“We are more than excited. If someone still has the trust to put up US$100 million (R750 million) that is a real achievement,” he told Miningmx. He has said there will be a further US$100 million (R750 million) loan that will be drawn down on to recapitalise the mines.
Aurora managing director Zondwa Mandela said the deal still had a few issues to resolve, but they would be finalised. “I’m very confident it’s going to happen,” he added.