| Mon 9 Mar 2009, 15:00 | | SIM - Simmer & Jack Mines Limited - Disposes of 19.6 million shares in First |
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SIM
SIIF
SIM - Simmer & Jack Mines, Limited - Disposes of 19.6 million shares in First
Uranium Corporation; raises C$90 million
Simmer & Jack Mines, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN Code: ZAE000006722
("Simmers")
SIMMER AND JACK DISPOSES OF 19.6 MILLION SHARES IN FIRST URANIUM CORPORATION;
RAISES C$90 MILLION
All amounts are in Canadian dollars unless otherwise noted.
This news release is intended for distribution in South Africa and Canada only
and is not intended for distribution to United States newswire services or
dissemination in the United States.
Johannesburg - Simmers announced today that the previously announced bought deal
financing whereby Simmers sold 19,600,000 common shares of First Uranium
Corporation Limited ("First Uranium"), at a price of C$4.60 per share for
aggregate gross proceeds of C$90,160,000 (approximately R735 million) (the
"Offering"), had closed.
The Offering was made through a syndicate of underwriters led by RBC Capital
Markets and including Scotia Capital Inc., National Bank Financial Inc.,
Macquarie Capital Markets Canada Ltd. and Raymond James Ltd.
Simmers has granted to the underwriters an over-allotment option, exercisable
for a period of 30 days from the closing of the Offering, to purchase up to an
additional 2,940,000 shares on the same terms as set out above solely to cover
over-allotments, if any, and for market stabilization purposes.
The net proceeds from the Offering will be used to fund, in part, the
acquisition of the Tau Lekoa Mine from AngloGold Ashanti Limited.
The sale of the shares was qualified under a final short form prospectus filed
on 2 March 2009 in all provinces of Canada, except Quebec, or made pursuant to
private placement exemptions in other jurisdictions outside of Canada.
As of the close of the Offering, Simmers owns 62,122,653 common shares of First
Uranium, representing 41% of First Uranium`s 151,574,037 common shares issued
and outstanding.
The securities have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, or under any state securities laws and may
not be offered or sold in the United States, absent registration or an
applicable exemption from the registration requirements. This news release does
not constitute an offer to sell or the solicitation of an offer to buy nor was
there any sale of the securities related to this transaction in any state in
which such offer, solicitation or sale would be unlawful.
About Simmers
Simmer & Jack is a gold and uranium miner focused on the development and
expansion of surface and underground operations in South Africa. These include a
41% stake in TSX and JSE-listed First Uranium Corporation which is aiming to
become a significant low-cost producer through the re-opening and underground
development of the Ezulwini Mine and the expansion of the Mine Waste Solutions
tailings recovery operation. Simmers` has two wholly-owned gold operations:
Buffelsfontein Gold Mine in the North West Province and Transvaal Gold Mining
Estates Limited (TGME) in the Pilgrim`s Rest/Sabie gold field. Simmers entered
into an agreement with AngloGold Ashanti on 17 February 2009 to purchase 100% of
the Tau Lekoa mine, situated 12 km`s from Buffelsfontein Gold Mine. The deal is
subject to certain conditions precedent and is expected to close on 01 January
2010.
For further information please contact Gail Strauss on 084 777 4060, or via
email to gail@simmers.co.za
Johannesburg
9 March 2009
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 09/03/2009 15:00:02 Produced by the JSE SENS Department.
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