The business rescue practitioner of the troubled Lily Mine has engaged fund raising specialists in a bid to raise R200m. The small mine, which produced about 30,000oz a year, is wholly owned by Australian company Vantage Goldfields. Vantage Goldfields SA and Lily’s sister mine, Barbrook, were also placed under business rescue in December with debts of R22m and R23m respectively. Lily was the scene of a disaster in February last year when a shaft collapsed trapping three miners in a container. Their bodies have still not been recovered. Business rescue practitioner Ross Devereux of Strategic Turnaround Solutions told Parliament’s mineral resources committee on Wednesday that Lily mine had about R117m in debt — R15m to secured creditors, R51.5m to preferred creditors and R50m to concurrent creditors who would receive 30c in the rand in terms of an agreement of compromise. Devereux said a new access project was planned for the mine at a cost of R130m while further working capital of R6...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now