Lily mine in limbo as sale agreement dispute gets tied up in court
Prospective buyer, Flaming Silver Trading, contends there is no reason the deal shouldn’t be immediately concluded
A deal that was hoped to revive the shuttered Lily mine, where the bodies of three miners remain trapped after a fatal accident in 2016, has ground to a halt. The embattled owner of the mine, Vantage Goldfields, wants to back out of a share sales agreement over concerns that the buyer, Flaming Silver Trading, cannot provide the required funding. But the hopeful new owner maintains the deal should be finalised as it has both the funds and regulatory approval. Unable to come to terms, a legal battle has ensued. Lily mine in Mpumalanga was the site of ground fall incident in February 2016, which trapped three miners underground, and whose bodies are yet to be retrieved. Lily, as well as Vantage Goldfields’ nearby Barbrook mine quickly fell into distress and were placed into business rescue in April that year. Flaming Silver, a subsidiary of the Siyakhula Sonke Corporation (SSC), entered into a share sales agreement with Vantage Goldfields in November 2017. The parties agreed that the s...
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