Village Main Reef is set to gain access to the remaining inferred resource of 3.8 million ounces of pgms and gold at Lesego Platinum's Phosiri project.

The gold miner confirmed yesterday (11th March) that it has purchased the remaining minority interest in the project for R95 million, adding it to the existing 17.5 million ounces.

In addition, the company will take a controlling stake in Lesego after concluding binding agreements on a R507 million deal, with 253 million Village shares issued at 200c each.

"This transaction will give us a 77 per cent economic control over the entire 21.3 million [ounces] inferred resource at Lesego's Phosiri platinum project," said Village Director Bernard Swanepoel.

"With the conclusion of the outstanding pre-emptive rights, the next step for shareholders is to approve what we believe to be a value-enhancing deal at an upcoming general meeting."

As a result of the latest transactions, Village will now have 72 per cent of the total inferred resource of Lesego under its control, with the IDC holding the other 28 per cent.

Village Main Reef was established in June 1934 with ore reserves of 3,293,000 tonnes, with an average grade of 4g/t.

Source:

Village Main in R507m binding bid for Lesego (11/03/10)

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