/ 15 July 2008

Village investors get to the point

Village Main Reef Gold Mining, the last surviving listing of one of the original central Witwatersrand gold mines, on Tuesday announced that it had received a firm intention from To the Point Investments to make an offer for the rest of its shares.

To the Point Investments last week acquired an additional 37,8% stake in Village, taking its total investment to 47,8% of Village’s issued share capital.

Increasing its stake above 35% means that To the Point is now obliged to make a mandatory cash offer to minority shareholders.

“To the Point Investments sees a great opportunity to rebuild Village and make it the next-generation resources company while unlocking value for Village’s current and future shareholders,” Village said in a statement to the JSE.

While the additional stake in Village was purchased for R1,1-million, or 46,02 cents a share, from Harmony Gold, To the Point intends to double its offer to R1 a share.

To the Point Investment is a subsidiary of To the Point Growth Specialist Investments — a company founded by former Harmony boss Bernard Swanepoel, who was made a director of Village following To the Point’s increased investment.

Shares in Village soared on news of Swanepoel’s involvement in the company.

The shares closed 243,75%, or 78 cents, up at R1,10 on Friday from a close of just 32 cents on Thursday.

This has helped Village shares gain a staggering 733% or R2,20 this month alone, but the shares fared less well on Tuesday, being down 37,5%, or R1,50, at R2,50 by 4pm. — I-Net Bridge