Lily mine to resume operations

Lily mine to resume operations
RE-CAPITAL-ISED: The Lily gold mine in Barberton is set to resume operations after the IDC agreed to pump R190m into it. PICTURE BY ANN7.

The Industrial Development Corporation pumped an amount of R190 million to assist owners of the mine return to production.

Operations will begin soon at Barberton’s Lily Mine, Vantage Gold Fields bossMike McChesney confirmed.

McChesney said all they are awaiting for now is receipt of the cash.

He said the R190 million loan was approved by the Industrial Development Corporation to assist them begin operations at the mine.

IDC made the loan to a company calledSSC Flaming Silver SPVinNovember 2017 and this is the company that will in fact own the mine.

Lowvelder quotesMcChesney as saying they await the final approval.

“Once the money is received and the creditors of the companies in business rescue have been consulted, the proposed transaction may be finalised,” he said.

SSC Flaming Silver SPV got into agreement with Vantage Goldfields to own 74% of it.

The mine was forced to close operations when three workers – Yvonne Mnisi, Pretty Nkambule and Solomon Nyerende – got trapped in a container during a collapse on 5 February 2016.

SEE ALSO: Cosatu blames Mosebenzi Zwane for trapped Lily Mine three

They remain trapped, two years later.

Vantage Gold Fields remains committed to working with all parties concerned to bring the outstanding matters to a speedy and satisfactory conclusion, said McChesney.

(edited by MLM)

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