| Fri 13 Mar 2009, 11:19 | | SIM - Simmer & Jack Mines Limited - Shareholders update |
|
SIM
SIIF
SIM - Simmer & Jack Mines, Limited - Shareholders update
Simmer & Jack Mines, Limited
Issued by Simmer & Jack Mines, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN Code: ZAE000006722
("Simmers")
Shareholders update
FIRST URANIUM RECEIVES BALANCE PAYMENT OF $75 MILLION
FROM GOLD WHEATON BARBADOS CORPORATION
FOR THE GOLD STREAM TRANSACTION
All amounts are in US dollars unless otherwise noted.
Johannesburg - Simmers` 41%-held associate company, First Uranium Corporation
("First Uranium"), has announced that it has received the balance payment of
$75 million from Gold Wheaton (Barbados) Corporation ("GW"), a wholly-owned
subsidiary of Gold Wheaton Gold Corp., in respect of the previously announced
purchase by GW of 25 percent of the estimated 2.1 million ounces of
life-of-mine gold production from First Uranium`s Mine Waste Solutions
tailings recovery operation ("MWS").
Under the terms of the agreement, First Uranium has agreed to deliver a minimum
of 20,000 ounces of gold during calendar year 2009, and thereafter 25 percent
of the life-of-mine gold production from MWS. In December 2008, First Uranium
received the first payment of $50 million from GW and commenced delivery of
25 percent of the gold production from MWS to GW. GW has made, and will
continue to make, ongoing payments to MWS at a price equal to the lesser
of $400 per ounce (subject to an annual inflation adjustment of 1.01 percent,
starting in December 2012) and the prevailing spot price at the time of such
payment, for each ounce of gold delivered under the agreement.
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 about Simmers please contact:
Gail Strauss at 084 777 4060, or gail@simmers.co.za
For further information about First Uranium, please contact:
Bob Tait, VP Investor Relations
at 416 342-5639 (office), 416 558-3858 (mobile) or bob@firsturanium.ca
13 March 2009
Date: 13/03/2009 11:19:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
