| Thu 7 Jun 2007, 9:32 | | SIM - Simmers - Acquisition of Mine Waste Solution |
|
SIM
SIIF
SIM - Simmers - Acquisition of Mine Waste Solutions
Simmer and Jack Mines Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN: ZAE000006722
("Simmers" or "the company")
ACQUISITION OF MINE WASTE SOLUTIONS COMPLETED
Simmers is pleased to announce that the Competition Commission has unreservedly
approved the acquisition of Mine Waste Solutions (MWS) by First Uranium
(Proprietary) Limited, a wholly-owned subsidiary of TSX-listed First Uranium
Corporation, of which Simmers is the majority shareholder.
In terms of the acquisition, First Uranium (Proprietary) Limited will take
ownership of MWS and its subsidiary Chemwes (Proprietary) Limited, which owns
and operates an existing gold mine tailings and re-processing facility adjacent
to First Uranium`s Buffelsfontein Project in South Africa.
With no further conditions precedent to be met, First Uranium will now acquire
all the MWS shares to be settled by the issue of 3,093,980 First Uranium common
shares to the vendors, namely Fraser Alexander Tailings (Pty) Ltd, Nedbank
Capital, the Industrial Development Corporation (IDC) and the current MWS
management, in full consideration of the purchase price.
As a consequence of the acquisition of MWS and the issuing of the new First
Uranium consideration shares, Simmers` shareholding in First Uranium Corporation
is diluted from 67.2% to 65.49 %.
According to Gordon Miller, joint CEO of both Simmers and First Uranium
Corporation, the value-adding benefits of the acquisition far outweigh the
slight dilution of Simmers` stake in the TSX and JSE-listed gold and uranium
entity.
"This acquisition is very positive for our Buffelsfontein Project as it will
enable First Uranium to benefit from a significant amount of its planned gold
production 15 months ahead of schedule. It also establishes a lower cost for our
first gold plant module at Buffelsfontein and fits exactly into our strategy of
bringing First Uranium`s two near-term projects into production as quickly as
possible," said Miller.
The MWS assets acquired include a gold plant with proven capacity for processing
570,000 tonnes per month and three tailings dams from which uranium and gold can
be recovered.
For more detailed information on how the acquisition of MWS impacts on the
Buffelsfontein tailings recovery project, please refer to the following
documents posted on First Uranium`s website, www.firsturanium.com:
news release of April 4, 2007 "First Uranium acquires Mine Waste Solutions
(Proprietary) Limited to complement the Buffelsfontein Tailings Recovery Project
in South Africa":
news release of May 2, 2007 "First Uranium signs formal agreement for the
acquisition of Mine Waste Solutions (Proprietary) Limited;
news release of May 22, 2007 "First Uranium files revised Buffelsfontein
technical report"; and
technical report of May 22, 2007 "Preliminary Assessment of the Buffelsfontein
Project, North West Province, Republic of South Africa."
Johannesburg
7 June 2007
Sponsor
Sasfin Capital
A division of Sasfin Bank Limited
Date: 07/06/2007 09:32:24 Produced by the JSE SENS Department.
