HomeGoldR200 million offer for President Steyn

R200 million offer for President Steyn

Pamodzi’s President
Steyn gold mine
Welkom, South Africa — MININGREVIEW.COM — 20 March 2009 – Pamodzi Gold Limited – a JSE-listed South African junior gold mining company with assets in the Witwatersrand gold basin – has received a R200 million offer from Virgile Mining for its President Steyn gold mine, in the Free State province.
“We made the offer to them several months ago, and it is still standing,” said Welkom-based Virgile CEO Hettie Fourie in a telephone interview with Bloomberg News.

Pamodzi – which bought the mine from Thistle Mining Incorporated in 2007 for R240 million – has a funding shortfall, and is currently seeking what it calls a “complete solution to the funding issues.” The company ended a 10-day strike at its Free State mines last Friday, after paying February wages. But company spokeswoman Bongi Radebe said by telephone that Pamodzi would not comment on the offer.

“The company – which employs 5 014 workers in South Africa – gave Virgile the green-light to carry out due diligence,” Fourie revealed. “We will get it done before the end of March,” she said, adding that her organisation wanted to save the mine for the benefit of the local community.

“Everything is in place and we have a social development plan for the area,” Fourie continued
Pamodzi has slumped 57% this year in Johannesburg trading, giving the company a value of R56 million.