| Mon 5 Mar 2012, 11:59 | | VIL - Village Main Reef Limited - First Uranium Corporation to dispose of |
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VIL
VIL
VIL - Village Main Reef Limited - First Uranium Corporation to dispose of
Mine Waste Solutions (Proprietary) Limited and Ezulwini Mine for no less than
US$405 million
Village Main Reef Limited
(formerly known as Village Main Reef Gold Mining Company (1934) Limited)
(Registration number 1934/0057034/06)
Share Code: VIL
ISIN: ZAE000154761
("Village")
FIRST URANIUM CORPORATION ("FIU") TO DISPOSE OF MINE WASTE SOLUTIONS
(PROPRIETARY) LIMITED ("MWS") AND EZULWINI MINE FOR NO LESS THAN US$405
MILLION
Village shareholders are referred to the announcement by FIU on 2 March 2012,
released on the news service of the Toronto Stock Exchange, and the
announcement by FIU today, released on the Securities Exchange News Service
of the JSE Limited, dealing with FIU`s intention to dispose of -
* MWS and its subsidiaries to AngloGold Ashanti, for a cash
consideration of US$335 million; and
* the Ezulwini Gold Mine to Gold One International Limited for a cash
consideration of US$70 million,
as separate transactions (collectively "the disposal").
In this regard, Village reminds its shareholders that Village is the holder
of 392,874 Mine Waste Solution Rand Denominated Convertible Notes with a face
value of R1000 per note ("MWS Notes") which are well secured over the assets
of MWS, as well as 13,556,739 FIU ordinary shares (comprising 5,7% of the
issued share capital of FIU).
The announcement by FIU indicates that it is the intention of FIU to repay
the MWS Notes in full from the proceeds of the disposal. The stated
completion date is the end of June 2012 and at that time Village will receive
some R393 million in lieu of the MWS Notes and a further approximate R20m for
its remaining FIU shares.
Village has in the past indicated that it will distribute most of the
proceeds from the settlement of the MWS Notes to Village shareholders by way
of a special dividend. At the time of receiving the proceeds, the board of
Village will consider what amount, if any, needs to be used to further
strengthen the Village balance sheet or to fund further growth opportunities
that could create value for Village shareholders.
The proposed disposal by FIU remains subject to a number of conditions.
Bernard Swanepoel, Village CEO, commented: "The potential disposal by FIU is
obviously great news for Village as this would enable us to unlock full and
fair value from our secured MWS Notes as well as the remainder of our FIU
shares"
05 March 2012
Sponsor
Java Capital
Investor relations
Vestor
Date: 05/03/2012 11:59:40 Produced by the JSE SENS Department.
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