Canada’s Galane Gold has proposed a rescue merger with embattled South African gold miner Vantage Goldfields, owner of the Lily Mine and Barbrook Mine.
The Barbrook and Lily Mines near Barberton, South Africa, were put into administration last year, following a disaster in which a pillar in the Lily collapsed, causing three people to fall into a sinkhole.
R190 million (US$15 million) from the Canadian company would be used towards carrying out the terms of the business-rescue plan.
Rob Devereaux, who is heading up the business rescue package for Lily and Barbrook said:
“My message to the miners is that it was difficult to get investment into the mines. This is a most welcome merger which will take both mines and the companies involved forward.”
The trade unions have also made positive noises. Gideon du Plessis of Solidarity noted that Galane’s strong focus on mining investment “bodes well” for sustainability.