Johannesburg, South Africa — MININGREVIEW.COM — 08 June 2010 – A Chinese consortium “’ said to be headed by Hong Kong-based Grand TG “’ is preparing a US$50 million (R375 million) bid for the two liquidated gold mines managed by Aurora Empowerment Systems.
A source in the mining sector told Miningmx the consortium, which will back a South African entity, is preparing the bid, and that it is concerned about the way Aurora has operated the Grootvlei and Orkney mines, which were both put into care and maintenance after Aurora ran out of money. Underground mines in South Africa deteriorate quickly if they are not carefully maintained, making it a very expensive exercise to restart them.
A second source confirmed that the offer is imminent.
South African media have identified one of the Chinese parties as Hong Kong-listed Grand TG Gold Holdings “’ a Western company which focuses predominantly on gold exploration, mining and processing in China. The two sources confirmed the identity of the company as part of the consortium.
The offer “’ said to be around a total of US$50 million, or nearly R390 million “’ will be made for both mines, which is well short of the R605 million Aurora has offered for the operations.
Liquidator Enver Motala said no offer had yet been received from the Chinese consortium, which has conducted a due diligence study of Grootvlei and Orkney. “They were supposed to make an offer two weeks ago, but so far we’ve not received anything,” he added.