| Mon 12 Jan 2009, 7:05 | | SIM - Simmer & Jack Mines Limited - Cautionary Announcement |
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SIM
SIIF
SIM - Simmer & Jack Mines, Limited - Cautionary Announcement
SIMMER & JACK MINES, LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN Code: ZAE000006722
("Simmers" or "the Company")
CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the terms of a loan agreement dated 30 March 2006,
between Simmers and Aberdeen International Inc ("Aberdeen"), in terms of which
capital was advanced to Simmers when the Company acquired Buffelsfontein Gold
Mine. In terms of that agreement, Aberdeen has the right to elect either to
receive payment of the capital advanced or to seek conversion of the loan into
ordinary Simmers shares subject to Simmers` shareholder approval.
Aberdeen has notified Simmers that it wishes to convert the outstanding amount
owing to it under the loan agreement into equity.
A general meeting of shareholders of the company will be held on or about 16
February 2009 to consider the conversion.
Should the conversion be approved by Simmers shareholders, it will result in a
specific issue of ordinary Simmers shares ("the issue") of 115 500 000 ordinary
shares at 80 cents per share, representing 9.8% of Simmers` ordinary shares on a
fully diluted basis.
The conversion is subject, inter alia, to (1) Simmers` shareholder approval,
requiring a 75% majority in terms of the JSE Limited`s Listings Requirements and
(2) the granting of a listing of the shares by the JSE Limited.
A circular containing all the relevant details relating to the loan, the
Aberdeen notice of conversion as well as the implications of the conversion is
being prepared and will be posted to shareholders shortly.
The circular will contain the board`s recommendation as well as the implications
should the conversion not be approved by shareholders.
A further announcement will be made following the aforementioned general meeting
of the company.
The issue 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 a further announcement is made.
Johannesburg
12 January 2009
SPONSOR
Sasfin Capital
a division of Sasfin Bank Limited
Date: 12/01/2009 07:05:02 Produced by the JSE SENS Department.
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