[miningmx.com] – VILLAGE Main (Village) said it would consider future
capital requirements ahead of distributing some or all of R413m received from First
Uranium; the distressed uranium producer that announced over the weekend that it
had sold its assets for $405m (R3bn) to pay down debt.
“If the transactions were concluded today I think we’d probably distribute the majority
of those funds,’ said Bernard Swanepoel, CEO of Village. He told Miningmx in
February that a special dividend would be the most likely outcome if Village’s
investment in First Uranium was realised.
Village has convertible notes held against First Uranium’s Mine Waste Solutions
(MWS), an asset AngloGold Ashanti said on March 2 it was buying for $335m
(R2.54bn).
First Uranium also said that once approvals had been won for the sale of MWS and
the sale of its Ezulwini shaft for $70m (R530m) to Gold One International, the
company’s cash and remaining assets would be distributed to shareholders. As Village
owns 5.7% of First Uranium, a further $20m in shares would be paid to it.
“There’s still four months to run before the transactions are complete, and
transactions are rarely completed on time,’ said Swanepoel. However, Village’s
projects were all fully funded, while its operating assets were contributing cash to the
business.
“Buffels is marginally cash generative and Cons Murch is doing fine. We have the IDC
funding for the platinum project so we’d like to stick with our consistent theme to pay
shareholders out,’ he said.
Village’s major shareholders include empowerment groupings, Vulisango and
Umbono, as well as US-based fund TradeWinds Global Investors and Rand Merchant
Bank.
“We want to be a dividend-paying gold company anyway, but these funds are not
from mining and so the bulk will go into a special dividend,’ he said.
Village acquired its shares and convertible notes in First Uranium when it took control
of Simmer & Jack in a R1.3bn transaction completed last year. It has already disposed
of an equity stake of around 20% in First Uranium for R205m to AngloGold Ashanti.
