Sharenet Sites 
Sharenet Sites
Notice of Application for Business Rescue of Cons Murch and Cautionary Announcement
VILLAGE MAIN REEF LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1934/0057034/06)
Share code: VIL ISIN: ZAE000154761
(“Village” or “the Company”)
NOTICE OF APPLICATION FOR BUSINESS RESCUE OF CONS MURCH MINE (PTY)
LTD (“CONS MURCH”) AND CAUTIONARY ANNOUNCEMENT
Shareholders of Village (“Shareholders”) are advised that Cons Murch, a 76,6%
owned subsidiary of Village, will commence with voluntary business rescue
proceedings as provided for by Section 129 of the Companies Act, 2008 (Act 71 of
2008) as amended (“the Companies Act”).
Cons Murch operates an antimony and gold mine at Gravelotte in Limpopo and the
main cash flows that the company currently receives are revenues from the disposal of
antimony and gold produced at its mine in Limpopo.
Cons Murch is in need of a capital injection in order to fund mining activities. Village
previously funded the mining activities of Cons Murch and is no longer in a position to
do so and has over the past year been involved in negotiations to sell the shares in
Cons Murch to Stibium Mining (Pty) Ltd, an Australian company.
However, the negotiated transaction to sell the shares in Cons Murch failed on
Wednesday, 10 December 2014 in that Stibium, the purchaser was unable to obtain
funding to implement the acquisition of the shares of the company.
After it became clear that the aforementioned transaction would not be consummated
Village resolved that it was unable to continue funding Cons Murch, therefore resulting
in Cons Murch becoming distressed. The board of directors of Cons Murch resolved to
place Cons Murch under business rescue in terms of Section 129 of the Companies
Act.
The DMR has been consulted on the granting of various approvals which could assist
Cons Murch in its rescue plan and has indicated a willingness to consider the
applications on merit.
Shareholders are further advised that Cons Murch has received demands for immediate
payment for expenses incurred which it is unable to pay.
Given the above factors the board of directors of Cons Murch met on Friday,
12 December 2014, and concluded that although Cons Murch is financially distressed,
there appears to be a reasonable prospect of rescuing Cons Murch, as the assets,
fairly valued, exceed the liabilities of Cons Murch. The decision has therefore been
taken that Cons Murch voluntarily commences with business rescue proceedings as
provided for by Section 129 of the Companies Act.
The resolution of the board of directors of Cons Murch to this effect is being filed with
the Companies and Intellectual Properties Commission. The board of directors of Cons
Murch is of the opinion that the implementation of a business rescue will afford the
business rescue practitioner the opportunity to develop and implement a business
rescue plan in a manner that will optimise the likelihood of Cons Murch continuing as a
going concern.
Shareholders are advised that the full impact of the above application is still to be
determined and may have a material effect on the price of the Company’s securities.
Accordingly, Shareholders are advised to exercise caution when dealing in the
Company’s securities until further information is provided.
Johannesburg
15 December 2014
Sponsor
Bravura Capital (Pty) Limited
Date: 15/12/2014 07:30:00 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.
