SIYAKHULA SONKE Empowerment Corporation Flaming Silver SPV has announced the company has received the approval of a R190 million loan facility from the Industrial Development Corporation (IDC) which is directly related to restarting the Lily and Barbrook Mines in Barberton, and to ultimately take the companies out of business rescue.
The approval of the loan facility is subject to a number of the normal conditions precedent and to the execution of the necessary agreements between the IDC and Vantage Goldfields (Pty) Limited (VGL).
SSC Group has provided their additional equity in addition to the loan facility of the IDC. The funding is sufficient to take both businesses out of business rescue.
In November 2017, SSC Flaming Silver announced that it had entered into a definitive agreement with Vantage Goldfields SA (Pty) Ltd (VGSA) to acquire their 74% currently shareholding in Vantage Goldfields (Pty) Limited (VGL) who together with Lomshiyo Investments (Pty) Ltd (26% BEE holding), owns the Lily and Barbrook Mines and associated infrastructure near Barberton in Mpumalanga.
Fred Arendse, CEO of SSC Flaming Silver commented: “The SSC Group has been involved in the business rescue process of these operations for an extended period during which time SSC management became acutely aware of the situation and the challenges faced, as well as the failed attempts that the shareholders of Vantage experienced in taking the company out of business rescue.
This investment is an important development for SSC Group in establishing itself as a mining company and will provide much needed support to the Mpumalanga local economy at an extremely difficult time, reinforcing our commitment to sustain and grow our investments in this country.”