Lily Mine: empty promises a huge blow to desperate workers

BARBERTON – Solidarity is claiming that AfroCan Resources Gold, which has missed the deadline to pay $2,5 million to Vantage Goldfields that owns Lily Mine, has failed to deliver promised investments before.

AfroCan was to pay the money to Vantage Goldfields by Thursday. It would have been used to pay the mine’s 900 employees who have been left without an income since March, among others.

“Following Solidarity’s media release last week on the failed investment transaction, Solidarity was approached by three ‘victims’ who had similar experiences with AfroCan’s CEO, Mr Brian Barrett,” Solidarity general secretary, Mr Gideon du Plessis, said.

Solidarity accused Barrett of having used the same modus operandi and excuses, transactions came to naught and he just disappeared from the scene.
“Two weeks ago, Barrett addressed the Solidarity, Amcu and Lily Mine leadership at the head office of Vantage Goldfields, making all kinds of promises and creating many expectations, none of which materialised,” Du Plessis said.

Also read: Lily mine management informs employees about the way forward

According to Du Plessis, Barrett was regarded as the “knight on the white horse” who brought hope to the mine’s 900 helpless employees that their outstanding salaries of the past three months would finally be paid.

Barrett’s investment would also have been used to sink a new shaft in a bid to retrieve the bodies of the three missing miners – Pretty Nkambule, Yvonne Mnisi and Solomon Nyerende – and to get the mine back into production.

“The Lily miners are devastated and shattered after receiving the news that Barrett had led all by the nose. Based on Barrett’s ‘investment’ and promises, a large number of workers had entered into agreements with their creditors to the effect that they would be able to settle some of their debt this week. The outcome is that even more workers would now be facing sequestration,” Du Plessis explained.

“As representatives of the workers, Solidarity and Amcu will not let the matter rest and we will do everything in our power to expose Barrett and bring him to book.

Also read: Lily Mine collapse has major impact on Barberton community

“This fraudulent transaction now means that negotiations with other investors, who had shown an interest previously, would have to start afresh – thus delaying the process to find a reputable investor by months,” Du Plessis stated.

“The breach is a setback for Lily Mine which remains in business rescue. The AfroCan funds were urgently required to commence the business rescue plan and to pay workers’ salaries.Vantage Goldfields concluded an unconditional subscription agreement with AfroCan on May 27 wherein AfroCan contracted to making an investment of $11,3 million.

“Despite various meetings since the breach with AfroCan’s CEO, Mr Brian Barrett, as well as corporate advisors, Summit Private Equity and Capital Mineral Resources Investments (CMRI), it appears that AfroCan has no intention to comply with its legal commitments.

Also read: Explosive info on Lily emerges

“Vantage Goldfields has instructed its lawyers to claim specific performance from AfroCan, failing of which AfroCan and its advisors will be held to account,” Vantage Goldfields said in a statement.

Lowvelder approached Barrett for comment. He undertook to comment, but didn’t.