Mandela's Grandson Gets Funding for the Rescue of South African Gold Mines

Aurora Empowerment Systems Ltd., the South African company led by the grandson of Nelson Mandela, said it secured a capital injection of 725 million rand ($98.5 million) to allow it to buy two gold mines in South Africa.

The funds will be provided by Global Emerging Markets, a New York investment group, GEM and Aurora said in a statement handed to reporters in Johannesburg today.

Aurora was chosen last year as the preferred bidder for two gold mines belonging to Pamodzi Gold Ltd., once the company went into liquidation after running out of funds. Aurora agreed to pay 215 million rand for Orkney and 390 million rand for East Rand, Pamodzi liquidator Enver Motala said on Oct. 14.

“We are considering the latest funding from Aurora and are encouraged by it,” he said by phone from Johannesburg today.

The liquidators will continue to hold talks with an unidentified Chinese company about the mines in case Aurora fails to come up with the funds, he said. A decision on the sale will be made within “the next couple of weeks,” Motala said.

To contact the reporter on this story: Ron Derby in Johannesburg at rderby1@bloomberg.net

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