| Tue 12 May 2009, 15:17 | | SIM - Simmer & Jack Mines Limited - First Uranium Announces $106 750 000 Bought |
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SIM - Simmer & Jack Mines, Limited - First Uranium Announces $106,750,000 Bought
Deal Equity Financing
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")
NEWS RELEASE - 11 May 2009
FIRST URANIUM ANNOUNCES $106,750,000 BOUGHT DEAL EQUITY FINANCING
All amounts are in Canadian dollars unless otherwise noted.
Johannesburg - Simmers announced today that its associate company, First
Uranium Corporation (TSX:FIU, JSE:FUM) (ISIN:CA33744R1029) ("First Uranium")
has entered into a bought deal financing agreement with a syndicate of
underwriters led by Scotia Capital Inc. and including Macquarie Capital Markets
Canada Ltd., RBC Capital Markets, National Bank Financial Inc. and Raymond James
Ltd. (collectively the "Underwriters"). Under the agreement, the Underwriters
will purchase 15,250,000 common shares of First Uranium at a price of $7.00 per
share for gross proceeds of $106,750,000 (the "Offering").
First Uranium 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 2,287,500 of the Company`s common shares on the
same terms as set out above solely to cover over-allotments, if any, and for
market stabilization purposes.
First Uranium intends to use the net proceeds from the Offering:
-to accelerate the construction of the pressure leach portion of the uranium
circuit at the Mine Waste Solutions tailings recovery operation to more quickly
realize higher uranium and gold recoveries;
-for potential consolidation opportunities; and
-for general corporate purposes.
The Offering is expected to close on or about 1 June 2009 and is subject to
certain conditions including the receipt of all necessary approvals, including
the approval of the Toronto Stock Exchange.
Simmers currently holds 41% of First Uranium. On closing of the Offering,
Simmers will continue to own 62,122,653 common shares of First Uranium,
representing 37.24% of the 166,824,037 First Uranium common shares issued and
outstanding.
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 (as at 11 May 2009) 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:
Nick Goodwin
(Investor Relations Executive)
on +27 83 629 8605 or nick@simmers.co.za
Gail Strauss
(Communications)
on +27 82 2936 8481 or gail@simmers.co.za
Bob Tait
(VP Investor Relations for First Uranium)
on +1 416 558 3858 or bob@firsturanium.ca
Johannesburg
12 May 2009
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 12/05/2009 15:17:02 Produced by the JSE SENS Department.
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