[miningmx.com] – THE events at the liquidated west Rand gold mine, Blyvooruitzicht (Blyvoor), seem to show that when mines die, people die too.
According to the Mail & Guardian in a report published on March 7, the liquidation of the operation has become a shambles similar in scope and severity to Grootvlei, the gold mine on the east Rand bought by Aurora Empowerment Systems in 2011 when put into liquidation by Pamodzi Gold.
The outcome at Grootvlei was the infiltration of the mine by illegal miners, fatal clashes with “security forces’, and stripping of the mine’s assets, allegedly by Aurora itself. It has been implied in some media reports that that is the modus operandi at Blyvoor with Goldrich, the company chosen to run the company by the joint provisional liquidators, already filing for business rescue amid allegations it, too, is stripping the mine.
It doesn’t help that Goldrich shares two directors with Aurora.
Blyvoor was closed in 2013 by Village Main Reef (VMR), the share price of which is on a bit of a comeback trail: up 44% since end-January. According to VMR CEO, Ferdi Dippenaar, shareholders like the fact he has minimised the firm’s liabilities to Blyvoor and another mothballed mine, Buffelsfontein.
Said Dippenaar: “Investors like the fact we could extend the life of Tau Lekoa to 2020 or further’. Tau Lekoa is VMR’s only remaining gold asset and is situated in the Orkney region. A complicating factor, however, is that it has been the subject of two offers by Orkney businessman Anthony Tannous.
Playing on the fears Tau Lekoa could end up like Grootvlei and Blyvoor, Tannous says he will take over the mine and operate it for years to come.
Dippenaar counters that a drilling programme at Tau Lekoa will prove the same for VMR. In any event, VMR has twice rejected offers from Tannous for Tau Lekoa who has been public in his pursuit of the mine.
Tannous even told the Department of Mineral Resources (DMR) VMR might close Tau Lekoa is less than two years. In a follow up meeting, Dippenaar was obliged to explain why Tau Lekoa would have a longer life. “DMR was more than happy with our response,’ said Dippenaar.
VMR shareholders appear to have confidence in Dippenaar. Shareholders representing about 12% of VMR’s share capital were contacted by Miningmx. They said if Tannous was serious about taking over Tau Lekoa – until recently, he was offering more for the mine than VMR’s total market value – he should buy up VMR shares in the market.
They seem to be available as another shareholder, DRDGold, which has a further 9% in VMR, is selling the company’s stake.
