Village Main Reef now has approval from its shareholders to complete the purchase of a stake in Lesego Platinum, it was confirmed yesterday (15th June).

At the company's annual general meeting, the R500 million all-share acquisition of a 72 per cent interest in the asset was finally rubber-stamped.

In addition, the shareholders agreed to a plan to raise between R150 million and R200 million in equity capital, which Village is expected to use for securing further targets.

Chief Executive Bernard Swanepoel suggested that Village is now well placed to become a "next-generation" mining company, as it will have access to 21.3 million pgm ounces plus gold at the Phosiri platinum project.

Under the terms of the deal, Village will receive a 60 per cent black economic empowerment status and an augmented relationship with South African firm BEE Umbono Capital.

Roy Pitchford and Phiway Mbuyazi, the current Chairman and Chief Executive respectively of Lesego, will also be joining Village's existing team.

Village revealed in March that it has concluded binding agreements for the transaction, with Mr Swanepoel describing Lesego earlier this month as "the perfect anchor asset".

Source:

Village gets thumbs up to absorb Lesego Platinum, raise capital (15/06/10)

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