Village - Disposal of remaining freehold property
Village Main Reef Gold Mining Company (1934) Limited
(Incorporated in the Republic of South Africa)
(Registration number 1934/005703/06)
(Share code: VIL)
(ISIN: ZAE000007720)
("Village" or the "Company")
Disposal of remaining freehold property
In compliance with the JSE Limited Listings Requirements Section 9, Category 3
transaction we advise as follows.
The Company operated a plant in the Johannesburg District of the Gauteng
province for the recovery of gold from sand dumps. During December 1995, normal
dump treatment operations ceased as a result of the mine"s inability to continue
operating at a profit. Since then the mine has been engaged in various closure
activities such as plant clean up, sale of assets, and rehabilitation.
The Company has received and accepted an offer embracing the normal terms and
conditions for a transaction of this nature from Allied Electronics Corporation
Limited (the Purchaser) to acquire the Company"s remaining property, namely the
remaining extent of Portion 97 (a portion of portion 51) of the farm Turfontein
96, registration division IR and improvements (the Property). The Property is
approximately 1,4 hectares in extent. Historically the Property was used for the
storage of waste material. The purchase price is R350 000 payable in cash
exclusive of Value Added Tax. Village"s responsibility remains the maintenance
and treatment of the mine dump situated on the Property.
At year end book value of the Property amounted to R250 000. Village"s net asset
value at 30 June 2005 was R2,076 million or 43,3 cents per share. The capital
profit of R100 000 derived from this transaction equates to 1,64 cents per
share. The cash inflow will be utilised to bolster the Company"s cash resources.
20 December 2005
Johannesburg
Sponsor to Village:
Nedbank Capital
Date: 20/12/2005 11:55:04 AM Produced by the JSE SENS Department
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