[miningmx.com] — Village Main Reef Gold Mining on Monday said it intended to raise between R150m and R200m to fund future acquisition opportunities.
The company said its proposed acquisition of Lesego Platinum and its Phosiri
Project partners was expected to be concluded in June 2010, when the company will move its listing to the Platinum and Precious Metals sector of the JSE Limited.
Village is in the process of acquiring a controlling interest in the Phosiri Platinum
Project for a total consideration of R507m, which is payable through the issue of 253.4 million Village shares at a price of 200 South African cents per share.
The company said the acquisition gives it an economic exposure to 21.3m PGM
(platinum group metal) ounces at a cost of under US$2.50 per ounce net of cash.
Village will acquire an effective ownership percentage of 72% in Lesego and
87.4% in Sweet Sensation, the owner of the Eersteregt prospecting right.
The Industrial Development Corporation has committed R142m to the Phosiri Project and as such owns the remaining 28% of Lesego.
Village said the R150m and R200m proposed fund raising to fund Village’s future acquisition opportunities would be done by way of an accelerated bookbuild.
The capital raising will be effected by an offer for subscription of a maximum of
100 million ordinary shares to local and foreign institutional and individual investors
for cash at a price of not less than a 10% discount to the 30-day volume weighted
average price at the time of issue.
“Village intends to embark on the bookbuild process once the pipeline of
acquisition opportunities are firmly secured and market conditions stabilise,” the
company said.
