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Vantage Goldfields' liquidation proceedings delayed for 2 more months


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Vantage Goldfields' liquidation proceedings delayed for 2 more months

The liquidation of Vantage Goldfields SA, which owns the Lily and Barbrook gold mines in South Africa, was delayed for two more months, City Press reported May 20.

The delay would give the company's new owners time to convince creditors that Vantage could reopen two mines in the country's Mpumalanga province.

The Lily and Barbrook mines were shuttered in 2016 following the collapse of the entrance to the Lily mineshaft, which buried three workers, and resulted in the company entering business rescue.

According to the report, creditors owed 139 million South African rand asked the Pretoria High Court to liquidate the mines when it appeared that business rescue practitioner Rob Devereux was struggling to secure a 300 million-rand investment to reopen the mines.

The investment will be used to open a new shaft at the Lily mine and to recover the bodies of the three workers buried under the former entrance.

In April, minerals and investment company Siyakhula Sonke Corp. Flaming Silver SPV signed a 190 million-rand loan agreement with Industrial Development Corp. to acquire a 74% stake in Vantage Goldfields.

Despite the attempts at fundraising towards the reopening of the South African mines, creditors of Vantage Goldfields have not withdrawn the liquidation application.

Under the business rescue plan, the Lily mine has 4.9 million tonnes of ore reserves that could be mined over 11 years, which may result in the mine's return to profitability within two months.