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VILLAGE MAIN REEF LIMITED - Further cautionary announcement

Release Date: 02/05/2013 08:30
Code(s): VIL     PDF:  
Wrap Text
Further cautionary announcement

VILLAGE MAIN REEF LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005703/06)
Share Code: VIL ISIN: ZAE000154761
(“Village”)


FURTHER CAUTIONARY ANNOUNCEMENT


Shareholders are referred to the announcement released over SENS on 18 March 2013 wherein shareholders
were advised that Village had entered into a binding funding agreement (“the transaction”) with
Continental Coal Limited (“Continental”), a South African thermal coal production, development and
exploration company, listed on the Australian Securities Exchange (“ASX”) and the Alternative Investment
Market of the London Stock Exchange (“AIM”), pursuant to which:

-      Village and Continental have entered into a private placement agreement in terms of which, inter alia,
       Village will subscribe for 100 000 000 ordinary shares in Continental (“Continental shares”) at an
       issue price of A$0.08 per share (the “private placement”);

-      Village and Continental have entered into a buy-back agreement in terms of which Village will acquire
       all of the shares held by shareholders of Continental holding parcels of Continental shares with a
       market value of less than A$ 500 (“minority members”) (the “buy-back”); and

-      Village may, up to 30 April 2014, acquire further Continental shares on the market at a price of up to
       A$0.10 per share, thereby increasing Village’s shareholding in Continental to 19.9% of the issued
       share capital of Continental. Both the timing and price of the on-market purchases of Continental
       shares by Village will be at the discretion of Village.

The financial effects of the transaction (which is categorised as a category 2 transaction for purposes of the
JSE Listings Requirements) are still in the process of being finalised and will be published in due course.

Shareholders are advised to continue to exercise caution when dealing in their shares until the financial
effects of the transaction are announced.

2 May 2013


Sponsor

Java Capital

Date: 02/05/2013 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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