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VIL - Village - Fulfilment of all the remaining suspensive conditions of the

Release Date: 07/03/2011 08:01
Code(s): VIL
Wrap Text

VIL - Village - Fulfilment of all the remaining suspensive conditions of the acquisition of the consolidated murchison operations together with the successful placement of 10,000,000 village ordinary shares Village Main Reef Gold Mining Company (1934) Limited Incorporated in the Republic of South Africa (Registration Number 1934/005703/06) Share code on the JSE: VIL ISIN: ZAE000007720 ("Village" or the "company") FULFILMENT OF ALL THE REMAINING SUSPENSIVE CONDITIONS OF THE ACQUISITION OF THE CONSOLIDATED MURCHISON OPERATIONS TOGETHER WITH THE SUCCESSFUL PLACEMENT OF 10,000,000 VILLAGE ORDINARY SHARES Further to the announcements released on the Securities Exchange News Service on 7 October 2010, 24 November 2010, 3 December 2010 and 10 December 2010, and using the terms defined in those announcements, unless otherwise stated, shareholders are advised that all the suspensive conditions relating to Stage 1 of the Proposed Transaction has been fulfilled and implemented in accordance with the terms and conditions as set out in the circular to shareholders dated 2 December 2010. Shareholders are also advised that the company has successfully placed 10 million new ordinary shares with institutional investors by way of a private placement (the "Placement"). The ordinary shares were issued in two tranches of 6,500,000 shares on 1 February 2011 and 3,500,000 shares on 16 February 2011,at a price of R2.25 per ordinary share, constituting a discount of 3.5% and a premium of 0.05% respectively, to the volume weighted average traded price of Village ordinary shares measured over the 30 business days prior to the listing applications of the shares. The majority of the capital raised through the Placement will be advanced to Consolidated Murchison to fund the capital injection of the Consolidated Murchison Mine. The balance will be used to fund Village`s working capital requirements. Commenting on the successful capital raising, the Chief Executive Officer OF Village, Bernard Swanepoel noted, `We were thrilled with the institutional interest displayed for this specific placement as well as for Village`s overarching strategy and investment case. The conclusion of this transaction and capital injection equips us to implement our stated strategy and transform CMM into a self sustaining mining entity.` Bryanston 7 March 2011 JSE Sponsor Macquarie First South Advisers (Pty) Limited Investor Relations Vestor Media and Investor Relations Date: 07/03/2011 08:01:24 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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