Village Main has lodged a R411 million bid in an attempt to take control of Lesego and its major pgm exploration project, it has been confirmed.

The precious metals miner is looking to issue over 205 million shares to complete the deal, which centres on the Phosiri platinum project in South Africa.

If the transaction is completed, Village will gain access to an attributable inferred resource of 17.5 million ounces pgm 3E (platinum, palladium, rhodium) plus gold.

The company has managed to finalise a binding agreement to assume control of Lesego and the other companies currently involved in operations at the 1,000m-deep deposit.

Village will also be able to capitalise on the R142 million raised by Lesego in its attempts to take Phosiri to the bankable feasibility study stage.

Meanwhile, the deal will strengthen Village's existing partnership with black economic empowerment firm Umbono Capital Partners.

"Some may think 1,000m to be quite deep, but there is a suite of producing mines that are already deeper than 1,000m and there are also a few planned shafts that go beyond that," Phiway Mbuyazi, who is set to join Village as part of the move, told Mining Weekly.

The Phosiri project is believed to contain a total inferred resource of 27.8 million ounces pgm 3E plus gold at an average grade of 6.43g/t.

Source:

Bernard Swanepoel's Village bids R411m for Lesego platinum (29/01/10)

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