Aurora may receive R50m lifeline

[miningmx.com] — AURORA Empowerment Systems could be thrown a R50m lifeline by the end of this week, joint provisional liquidator of Pamodzi Gold, Enver Motala confirmed on Wednesday.

Aurora’s new backer, the Swiss-based alternative investment firm Global Emerging
Markets (GEM), has agreed to extend the funds once Labat Africa (LAB) confirms
that it has become Aurora’s controlling shareholder. This will be consummated on acquisition of a 45.7% stake in Labat, effectively a reverse takeover.

The company is expected to pay for the stake this week with Labat likely to make a
formal announcement once the deal has been finalised.

Motala said the money would allow Aurora to pay its wages, creditors and for care
and maintenance of the Orkney and Grootvlei mines, previously owned by the
liquidated Pamodzi Gold.

It should be enough to carry Aurora for the next three months, taking it beyond the
end of September when it is expected to complete all the regulatory approvals related to the Labat deal.

Once the deal has been completed, GEM will release the R725m in funding it has promised Aurora.

This money will be used to secure its purchase of the mining assets.

GEM has also agreed to provide a further R725m to pump back into the
assets to make them work.

“It looks very encouraging,” said Motala, who has been chasing Aurora for payment since it was named the preferred bidder for the assets late last year.

In the meantime, Motala said the Chinese consortium that had expressed an interest in the asset was busy completing a competent person’s report.

This report might result in a firm offer from the consortium, he said, indicating that
a race was still on to see which company would be the first to put the funding on the table.