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Mining investment company Arqomanzi and its empowerment partner, Siyakhula Sonke Empowerment Corporation (SSC Group), welcomes the Constitutional Court's decision to dismiss Vantage Goldfield's leave to appeal a Supreme Court ruling.

The decision by the Constitutional Court on Tuesday, 17 October 2023, signifies a significant victory for the families of Lily Mine and marks a critical milestone in the ongoing business rescue efforts of the Lily and Barbrook mines in Mpumalanga and puts an end to a protracted legal battle spanning seven years.

The Constitutional Court's decision has now brought closure to this matter and paves the way for the adoption of the business rescue plan and its amendments to be submitted to creditors for their input and approval. This development, in turn, sets the stage for the resumption of operations at Lily Mine, bringing the families of the miners closer to the long-awaited recovery of their loved ones.

Arqomanzi CEO Neill Herrick says: “We have spent more than four years and a large amount of money successfully fighting for our rights and those of creditors and affected persons in the business rescue of the Barbrook and Lily mines. Creditors and Affected Persons will recall that the Business Rescue Practitioners (BRPs) have committed on numerous occasions to implement the order of Acting Judge Roelofse as soon as the legal proceedings are final. The legal proceedings could have been prevented if Vantage had accepted the Roelofse Judgement in 2019”.

The recent Constitutional Court decision follows yet another decision, dated 27 June 2023, signed by Justice Visvanathan Ponnan and Justice Keoagile Matojane, and two prior high court applications, with the most recent one being resolved by the Supreme Court of Appeal (SCA).

The SCA upheld Judge President Legodi's order from 26 October 2021, dismissing Vantage's appeal against it.

Despite more than six years since the initiation of business rescue proceedings for the Vantage companies, it is evident that these companies can still be saved.

The path is clear for the BRPs to uphold their legal duty, embarking on the four pivotal steps: auditing and refining creditors' schedules, disseminating them to all concerned parties; unveiling revised business rescue plans for creditors' deliberation; assembling creditor meetings for discussion and voting on these business rescue plans; and ultimately executing the well-structured plans.

SSC Group CEO Fred Arendse added: “We are delighted with the Constitutional Court ruling, paving the way for us to open the mines, create employment and business opportunities, support our community, and provide closure to the affected families.”

With the refusal of Vantage's appeal by the Constitutional court, the SCA ruling, which emphasizes the following, stands:

Arqomanzi had legally acquired loan claims against Vantage Goldfields (Pty) Ltd and Barbrook Mines (Pty) Ltd from The Standard Bank of South Africa.

Arqomanzi is recognized as an independent creditor of both Vantage Goldfields (Pty) Ltd and Barbrook Mines (Pty) Ltd – The largest independent creditor.

Only R14 million of Arqomanzi's loan claim against Vantage Goldfields (Pty) Ltd had been subordinated.

Only R17 million of Arqomanzi's loan claim against Barbrook Mines (Pty) Ltd had been subordinated.

The acquisition of Vantage Goldfields Limited (Australia) by Macquarie in 2020 required consent from the Minister of Minerals and Energy under section 11 of the Minerals and Petroleum Resources Development Act, thereby rendering the mining rights of Makonjwaan Imperial Mining Company (Pty) Ltd and Barbrook Mines (Pty) Ltd inoperable until such consent is granted.

Vantage Goldfields (Pty) Ltd and the business rescue practitioners are permanently prohibited from stating that Ministerial consent was not required.

Issued by SSC Group (Pty) Ltd