AfroCan not upholding its end of the bargain
According to a statement released by CEO of Vantage Goldfields, Mr Mike McChesney and Business Rescue Practitioner of Lily Mine, Rob Devereux on July 1, the Canadian company AfroCan, did not uphold its end of the bargain.
This appears to be a serious breach of the agreement as the signing, whereby AfroCan was supposed to make the payment of US$2.5 by June 30, was jointly announced on May 27 by Vantage Goldfields and CEO of AfroCan, Brian Barrett.
On June 13, Mr Barret paid a visit to the head office of Vantage Goldfields in Mbombela during which the senior staff and union leaders were addressed by him. At this conference, he confirmed his commitment to the investment and the development of the mines - Barbrook and Lily.
Part of the statement read as follows:
“Despite numerous warning of their breach, AfroCan has failed to make the payments due. The proceeds of the AfroCan investment formed a major component of the Business Rescue Plan for the Lily Mine and this will result in further delays to the implementation of the plan. AfroCan has no right to withdraw or to terminate the agreement and Vantage is committed to implementing whatever steps are necessary to enforce the agreement.
Both Mr McChesney and Mr Devereux said that Vantage Goldfields remains committed to the business rescue plan and will, in collaboration with employees and unions, seek alternative funding solutions.
