SSC Group and Lily Mine heads to court
The court application by Siyakhula Sonke Empowerment Corporation Silver and its subsidiary, Flaming Silver Trading 373, collectively known as the SSC Group, to have Vantage Goldfields South Africa (VGSA) transfer the shares of the mines, will be heard at the Mpumalanga High Court today.
LOW’S CREEK – SSC Group has applied for the matter to be heard urgently.
VGSA recently cancelled the sale of its shares in the mines to SSC Group. SSC Group is now fighting this decision in court.
Read More: Lily Mine sale only awaits ministerial approva
Fred Arendse, chief executive for SSC Group, said they have been granted Section 11 approval but they are not able to commence their activities given their dispute over transferring the share certificates and all related mine plans and documents.
These are currently being held by the previous owners, VGSA.
Since the last engagement, that was facilitated by the Department of Minerals Resources (DMR), between the two parties on March 29, the parties remain in dispute regarding their contractual matter. The DMR have encouraged both parties to find an amicable solution to their impasse and the department remains committed to the reopening of the mine. However, VGSA refuse to heed to the DMR invitations,” said Arendse.
He said delays on behalf of VGSA forced the postponement and case management of the matter.
Final papers were meant to be filed by May 3. However, further delays by VGSA have again been experienced by them only submitting their final papers on May 13. VGSA is currently in breach of the deadline the court order and have applied for condonation for their late submission on May 23. This is their second application for condonation on this matter for submitting their papers late,” added Arendse.
Meanwhile, since a night vigil on April 30, the communities of Low’s Creek and ex-employees have been camping close to the mine.
They have vowed not to move out until the mines reopen.
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Lily Mine was closed following a disastrous shaft collapse in February 2016. Barbrook Mine was shut down the same year.
In the meantime, an application for the final liquidation of VGSA was in the process.
The business rescue practitioners (BRP) appointed for the mining company, Rob Devereux and Daniel Terblanche, said in a statement that a number of parties were interested in acquiring the assets: Lily and Barbrook mines.
The BRP says that the legal actions, among others, were preventing them from doing their jobs, which is to reopen the mines and that liquidating VGSA will enable them to freely enter into new bidding processes with prospective buyers.
