Johannesburg, South Africa — 31 July 2013 – Village Main Reef Limited has announced that its board of directors has voted to suspend financial assistance to Blyvooruitzicht Gold Mining Company Limited (Blyvoor) and has advised the board of directors of Blyvoor accordingly.
Village assumed operational control at Blyvoor in June 2012 under the terms of the agreement reached between the company and DRDGOLD Limited.
During that time the company has invested some R190 million in Blyvoor to sustain operations, for which a loss of R88 million was incurred in the three months to 30 June 2013. The current gold price, coupled with rising costs and a series of recent operational infrastructure challenges, has rendered the operation unsustainable.
In a statement issue here Village said that it would work closely with DRDGOLD, which remains the majority shareholder of the mine, in determining the next steps.
Source: Village Main Reef Limited. For more information, click here.