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Lily Mine owners to take legal action against AfroCan

The mine was placed under business rescue, putting 900 jobs on the line after a shaft collapse in February.

FILE: Miners at Lily Mine in Barberton Mpumalanga in February, 2016. Picture: Kgothatso Mogale/EWN.

JOHANNESBURG - Vantage Gold Fields, the company that owns Lily Mine, says it's now opted to take legal action against international firm AfroCan, after it failed to honour an agreement to invest into the Barberton mine.

The mine was placed under business rescue, putting 900 jobs on the line after a shaft collapse in February.

Employees at the cash-strapped operation have not been paid since the end of March.

Three workers are still trapped underground at the mine after the container they were working in plunged into a massive hole caused by rock fall.

Business rescue practitioner Rob Devereux says, "The money was to flow down to the Lily Mine. They were to put money in on 1 June, [but] there were various excuses made and the money was not forthcoming."