Johannesburg, South Africa — 17 July 2013 – Creditors of Southgold Exploration Proprietary Limited have voted in favour of a business rescue plan to save the Burnstone mining operations.

The Southgold business rescue, which commenced on September 14 last year, is the largest business rescue in South Africa to date, reports Fin24.

Following marketing efforts in relation to Southgold’s assets, a business rescue plan that provides for the resolution of all outstanding claims against Southgold and for the ultimate resurrection of the mine itself, was published by Southgold’s business rescue practitioner, Peter van den Steen of V-Squared, on 4 July 2013.  

The proposed plan provides for the transfer to Wits Gold or its designee of all the shares issued by Southgold. That plan was passed by the requisite majority of Southgold’s creditors on Monday and, if successfully implemented, will result in the saving of the Burnstone mine.

The mine plays a vital role in Balfour and its surrounds and its rescue will represent a significant victory for the new business rescue regime.

Webber Wentzel partners, Etienne Swanepoel and Lara Kahn believe the ruling is one of the biggest successes in business rescue to date.  The business rescue plan will result in a value gain of about R3 billion.

Source: Fin24. For more information, click here.