Vantage looking for new investors to restart Lily and Barbrook mine operations

BARBERTON – Vantage Goldfields, owner of Lily and Barbrook mines, expressed its disappointed this week that the merger between itself and prospective buyer, Galane Gold fell through.

Mike McChesney, CEO of Vantage, told Lowvelder on Thursday that there were a number of issues which could not be resolved in time.

Galane announced in a statement last week that the two “have been unable to conclude on the execution of a binding acquisition agreement”.

Read more

A previous proposed deal with AfroCan Resources Gold fell through in 2016.

A merger with Galane would have seen the restart of Lily and subsequently Barbrook, and the paying of creditors. The former workers have been plunged into poverty.

Richard Nkosi reports that Solidarity general secretary Gideon du Plessis said it was a major setback for the workers and the community dependent on an income from the mine.

“With every transaction that has failed over the past 18 months, it took six months before the next potential investor or buyer appeared on the scene,” he said.

“The search for a buyer or investor is important to create job opportunities and to pay workers’ outstanding salaries but in the meantime only the business-rescue practitioner has been enriched. It is now time for the creditors and Lily workers to investigate the pros and cons of a liquidation process.”

McChesney said various parties continued to show interest in the Vantage mines.

“We are already in the process of discussions with them. Management supports the business-rescue process and is aware of the plight of the workers. Every effort is being made to seek an urgent solution, and affected parties are being kept informed of developments,” he stated.

The investigation into the cause of the accident at Lily Mine has been concluded and the Department of Mineral Resources’ verdict is expected soon.

Also see