Aurora kept waiting for R50m funds

[miningmx.com] — AURORA Empowerment Systems could not confirm on Monday if R50m in fresh capital pledged by Swiss investment firm Global Emerging Markets (GEM) had finally landed in the firm’s coffers.

Thulani Ngubane, Aurora’s commercial director, said in an interview with Miningmx on Monday that the funds were imminent.

“What was left was to fill out some documentation,” he said of securing the funds. “But I can only confirm with you tomorrow (Tuesday) if the money has been sent through,’ said Ngubane.

Enver Motala, the joint provisional liquidator of Pamodzi Gold, the former owner of the assets Aurora is seeking to refinance, could not validate if the funds had been received after telling Miningmx on Friday that they “… could be going through as we speak, otherwise they should be in within the next two days’.

In July, Motala said the capital would be used to pay salaries of Aurora’s employees.
Ngubane, in Cape Town alongside Motala, did not divulge what the purpose of the trip was.

Aurora’s gold mining activities were front page news last week after it emerged there was an underground running battle between security forces employed at Aurora’s Grootvlei mine and alleged “illegal’ miners operating in the mine, currently on care and maintenance.

It is thought some of the illegal miners, dubbed the ‘Zama Zamas’, may have been employees of Grootvlei who had turned to crime in lieu of salary payments by management. The company owned by President Jacob Zuma’s nephew Khulubuse and Zondwa Mandela, the grandson of former president Nelson Mandela, has not paid Grootvlei miners since March.

Underground battle

Aurora confirmed last week that its security guards had gunned down four Zama Zamas who had forcefully taken over one of the shafts at its East Rand-based Grootvlei.

It claimed the alleged criminals had killed one of its security personnel and kidnapped another before fleeing, alerting the company to “a situation’.

Ngubane last week suggested in media reports that the company refused to play victim to the perpetrators which is why it had contracted in a security company.

“It is simple… if you go out there and steal gold, should I just go down on my knees and pray? It doesn’t work like that. We have to protect our assets,” he said.

More woes loom for the gold miner should the GEM cash not materialise.

On Friday Motala said: “As liquidators, we feel that this transaction has dragged on too long. We have even been to court over the matter and would like to see the transaction finalized by the end of November.’

He said he could not say how much the required balance for the mines would be as the package for both mines was R390m for Grootvlei and R250m for Orkney.

To date Aurora has only paid R10m for both assets.