Village Main Reef Chief Executive Bernard Swanepoel has described Lesego Platinum as "the perfect anchor asset".

The company is looking to secure a R507 million all-share deal for a 72 per cent stake in the target, which would give it exposure to 21.3 million pgm ounces.

In March, it confirmed that binding agreements for the deal have been concluded, while it has also snapped up the remaining minority interest in the Phosiri platinum project.

"The acquisition of Lesego is the perfect anchor asset to develop the company into a new-generation mining company initially targeting early cash flow generative opportunities in precious metals," commented Mr Swanepoel.

"We have assembled a strong managerial and operational team who possess the skill and dedication to continue the development of the Phosiri project into a mine."

The news comes as Village confirmed that it intends to move its listing on the Johannesburg stock exchange to the 'platinum and precious metals' sector next month.

In addition, it now plans to raise between R150 million and R200 million through an accelerated book build in order to provide capital for further expansion opportunities.

Village Main Reef is currently 46 per cent-owned by black economic empowerment company Umbono.

Source:

Village Main seeks to raise up to R200m for acquisitions (31/05/10)

© Adfero Ltd