Second Lily mine buyer pulls out
Galane Gold is the second prospective investor to pull out of acquiring Vantage Goldfields.
BARBERTON – The company said in a statement last week that Galane and Vantage “have been unable to conclude on the execution of a binding acquisition agreement” for all of Vantage’s outstanding shares.
“Vantage has been unable to meet the conditions set out in the LOI and therefore is not in a position to sign the acquisition agreement. Galane provided five extensions to the original LOI, and will not extend further,” CEO, Nick Brodie said.
A deal with AfroCan Resources Gold fell through in 2016.
“This is a disappointing outcome, but at the current moment the only option. The situation at Vantage is complex with the company’s primary subsidiaries in business rescue and its key operating mine having suffered a tragic accident in 2016,” said Brodie.
Three miners died when a mine shaft collapsed in February last year.
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“Working with the Vantage management team with substantial support from the business-rescue practitioner, we presented a solution to first restart Lily Mine, and subsequently Barbrook Mine, pay off the creditors over a reasonable time period and provide an acquisition agreement that was in line with the LOI,” Brodie said.
“Vantage has been unable to meet the conditions in the LOI for a variety of reasons, despite its best efforts and we therefore have no option but to terminate our discussions.”
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