| Tue 21 Apr 2009, 8:00 | | SIM - Simmer & Jack Mines Limited - Financial effects of disposal and |
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SIM
SIIF
SIM - Simmer & Jack Mines, Limited - Financial effects of disposal and
acquisition and withdrawal of cautionary
SIMMER & JACK MINES, LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN Code: ZAE00006722
("Simmers" or "the Company")
FINANCIAL EFFECTS OF THE DISPOSAL OF 19 600 000 SHARES IN FIRST URANIUM
CORPORATION AND THE ACQUISITION OF TAU LEKOA FROM ANGLOGOLD ASHANTI LIMITED
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Simmers shareholders are referred to the announcement published on 18 February
2009 regarding:
- Simmers` agreement with AngloGold Ashanti to acquire, as a going concern, (the
"Acquisition") the assets, intellectual property and associated rights to the
Tau Lekoa Mine including the Weltevreden and Goedgenoeg properties ("Tau Lekoa"
or the "Sale Assets") for a consideration of R600 million; and
- Simmers` sale of 19 600 000 shares in its subsidiary, First Uranium
Corporation, in a "Bought Deal" transaction led by RBC Capital Markets to raise
gross proceeds of C$90 160 000,(collectively "the transactions").
Financial effects of the transactions
It has been assumed that, for purposes of the pro forma financial effects, the
statement of comprehensive income and the statement of financial position, the
transactions took place with effect from 30 September 2008.
These unaudited pro forma financial effects, which are reflected in the table
below, have been disclosed in terms of the JSE Listings Requirements and because
of their nature may not give a fair presentation of Simmers results and
financial position after the transactions. The unaudited pro forma financial
effects are the responsibility of the directors of Simmers and are presented in
a manner consistent with the accounting policies adopted by Simmers.
Before the After the After the
transaction transactions transactions
s - - Pro forma - Percentage
published change
results
Basic Profit / cents (16.97) 10.51 162%
(Loss) per Share
Diluted Profit / cents (15.75) 9.75 162%
(Loss) per Share
Headline Profit / cents (16.97) (16.97) -
(Loss) per Share
Diluted Headline cents (15.75) (15.75) -
Profit / (Loss) per
Share
NAV per share cents 202.09 181.53 (10%)
Notes and assumptions:
- Amounts are reflected in South African cents;
- The "Before" financial information is based on Simmers` published and reviewed
results for the six month interim period ended 30 September 2008;
- The "After" financial information reflects the financial position as at 30
September 2008 after the transactions;
- Simmers has agreed to pay a 3% gross revenue royalty to AngloGold Ashanti on a
quarterly basis which is payable on all gold produced by the Sale Assets and
sold at an average price exceeding R180 000/kg per quarter from 1 January 2010.
This royalty has not been included in the financial effects above. Moreover, the
royalty will not apply to gold sold at an average price below R180 000/kg per
quarter and will cease to apply once it has been paid in respect of 1.5 million
ounces of gold produced by the Sale Assets; and
- The pro forma financial effects do not include the 15% overallotment option
that Simmers granted the underwriters. The option was not exercised and expired
on 9 April 2009.
Classification of the transaction
In terms of the JSE Listings Requirements, the Tau Lekoa acquisition is
classified as a category 2 transaction. Accordingly shareholder approval is
not required.
Withdrawal of cautionary announcement
Shareholders are referred to the cautionary included in the announcement
published on 18 February 2009 and are advised that as the financial effects of
the transactions have now been released, caution is no longer required to be
exercised by shareholders when dealing in their securities.
Johannesburg
21 April 2009
SPONSOR
Sasfin Capital
a division of Sasfin Bank Limited
Date: 21/04/2009 08:00:01 Produced by the JSE SENS Department.
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