| Mon 7 Mar 2011, 8:01 | | VIL - Village - Fulfilment of all the remaining suspensive conditions of the |
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VIL
VIL
VIL - Village - Fulfilment of all the remaining suspensive conditions of the
acquisition of the consolidated murchison operations together with the
successful placement of 10,000,000 village ordinary shares
Village Main Reef Gold Mining Company (1934) Limited
Incorporated in the Republic of South Africa
(Registration Number 1934/005703/06)
Share code on the JSE: VIL
ISIN: ZAE000007720
("Village" or the "company")
FULFILMENT OF ALL THE REMAINING SUSPENSIVE CONDITIONS OF THE ACQUISITION OF THE
CONSOLIDATED MURCHISON OPERATIONS TOGETHER WITH THE SUCCESSFUL PLACEMENT OF
10,000,000 VILLAGE ORDINARY SHARES
Further to the announcements released on the Securities Exchange News Service on
7 October 2010, 24 November 2010, 3 December 2010 and 10 December 2010, and
using the terms defined in those announcements, unless otherwise stated,
shareholders are advised that all the suspensive conditions relating to Stage 1
of the Proposed Transaction has been fulfilled and implemented in accordance
with the terms and conditions as set out in the circular to shareholders dated 2
December 2010.
Shareholders are also advised that the company has successfully placed 10
million new ordinary shares with institutional investors by way of a private
placement (the "Placement"). The ordinary shares were issued in two tranches of
6,500,000 shares on 1 February 2011 and 3,500,000 shares on 16 February
2011,at a price of R2.25 per ordinary share, constituting a discount of 3.5% and
a premium of 0.05% respectively, to the volume weighted average traded price of
Village ordinary shares measured over the 30 business days prior to the listing
applications of the shares.
The majority of the capital raised through the Placement will be advanced to
Consolidated Murchison to fund the capital injection of the Consolidated
Murchison Mine. The balance will be used to fund Village`s working capital
requirements.
Commenting on the successful capital raising, the Chief Executive Officer OF
Village, Bernard Swanepoel noted, `We were thrilled with the institutional
interest displayed for this specific placement as well as for Village`s
overarching strategy and investment case. The conclusion of this transaction and
capital injection equips us to implement our stated strategy and transform CMM
into a self sustaining mining entity.`
Bryanston
7 March 2011
JSE Sponsor
Macquarie First South Advisers (Pty) Limited
Investor Relations
Vestor Media and Investor Relations
Date: 07/03/2011 08:01:24 Produced by the JSE SENS Department.
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