Consultancy Siyakhula Sonke Empowerment Corporation (SSC) and its subsidiary Flaming Silver on Monday announced that the Mpumalanga High Court had dismissed an application brought by former Flaming Silver director Ferdi Dippenaar.
This was the first part of a legal process in a dispute between Vantage Goldfields South Africa and SSC and Flaming Silver regarding the acquisition by SSC of the Barbrook and Lily gold mines, in Mpumalanga.
SSC said Dippenaar had been dismissed by SSC as he had allegedly leaked confidential information to Vantage directors.
SSC further claimed that he had subsequently joined forces with Vantage to “frustrate” SSC’s efforts to reopen the Barbrook and Lily mines.
Dippenaar had, in May, appealed to have the “Fourth Addendum” to the Vantage and Flaming Silver sale of shares agreement declared null and void.
Additionally, the court granted Dippenaar the right to intervene in the matter between the companies, effectively becoming the fifth respondent in the main application.
SSC CEO Fred Arendse explained in a statement published on Monday that the ruling had paved the way for the hearing of Flaming Silver’s main application against Vantage to proceed, as that had been dependent on the outcome of Dippenaar’s intervention application.
SSC had sought, since mid-2018, for Vantage to hand over the share certificates of the Barbrook and Lily mines and claimed that Vantage had been delaying the sales process.
SSC in mid-April filed an application with the court to resolve the dispute with Vantage.
Vantage on March 26 cancelled the agreement for the sale of assets with Flaming Silver, stating that SSC had not complied with funding arrangements to meet business rescue requirements, despite having had “more than 16 months to do so”.
Vantage had, at the time, said it was aware of an assertion made by the business rescue practitioners (BRPs) – in their monthly report that was circulated to creditors – stating that they had seen “proof of funding” for the sale of shares agreement. Vantage, however, challenged this assertion and was taking issue with the BRPs for “misguided “statements regarding the transaction.
SSC on Monday said it remained optimistic that the court would rule in its favour in the main application.
Vantage, meanwhile, said in a separate media statement on Monday that it continued to pursue an orderly process to bring closure to the issue, despite an “endless barrage of attacks, threats and insults” hurled at the company and its directors.
Vantage persisted with its position that the agreement with Flaming Silver had been cancelled and continued discussions with prospective buyers for the Barbrook and Lily mines.