MEMORANDUM
TO: ALL MEMBERS OF UASA-THE UNION: KOORNFONTEIN MINES
FROM: ADVOCATE NICK VAN ROOYEN
DIVISIONAL MANAGER: LEGAL & SPECIALIST SERVICES
DATE: OCTOBER 21, 2019
SUBJECT: BUSINESS RESCUE PROCESS:
KOORNFONTEIN MINES (Pty.) LIMITED (“KFM”): CREDITORS MEETING
Background
The creditors meeting in respect of KFM took place on Friday October 18, 2019 in Fourways.
The purpose of the creditors meeting was in order to present the Business Rescue Plan (“BRP”) to creditors and permit attendees an opportunity to seek greater clarity and amplification on the BRP.
The three (3) successful bidders for the purchase of KFM were as follows:
- AEFMFC-LURCO (“LURCO”);
- ORCHID MINING CONSORTIUM (OMC”);
- BLACK ROYALTY MINERALS (“BRM”).
MANDATE
Members of UASA-The Union mandated the union to accept the bid of LURCO. A concern was raised by UASA-The Union’s Legal Officer: Compliance Janek Wilimiec regarding the absence of capital funding in the LURCO bid.
Thecreditors voted overwhelmingly in favour of the LURCO bid, subject to the consortium confirming capital funding for the purchase no later than Friday October 25, 2019.
The creditors also voted to confirm BRM as the second successful bidder in the event that LURCO did not provide proof of financial funding. BRM had already confirmed capital funding in its bid to the BRPs.
Yours faithfully
ADVOCATE NICK VAN ROOYEN
DIVISIONAL MANAGER: LEGAL AND SPECIALIST SERVICES