Pamodzi buys time to sort out finances

Judicial managers will be appointed for beleaguered gold miner Pamodzi Gold's Free State and East Rand mines today.

Judicial managers will be appointed for beleaguered gold miner Pamodzi Gold's Free State and East Rand mines today.

In a statement yesterday, the company said management had applied to the High Court in Pretoria on Wednesday to place the mines under provisional judicial management.

The court granted the application with a return date of May 26, the statement said.

"The reason for the applications was to provide the company with time to resolve the current funding constraints without having to deal with vexatious liquidation applications." the statement added.

On March 20, Pamodzi's Orkney gold mine in North West was placed in provisional liquidation.

On April 14, the gold miner has to defend the application to prevent the Orkney operations from being placed into full liquidation.

Pamodzi Gold's shares have been suspended on the JSE at the company's request. Should the company be placed in final liquidation, it would result in 15000 job losses.

Last week a creditor of the Orkney operations, AngloGold Ashanti, provided R10million to the mine to pay workers. - Sapa

Liquidation would result in 15000 job losses

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