| Tue 2 Jun 2009, 11:50 | | SIM - Simmer & Jack Mines Limited - First Uranium closes $106 750 000 bought |
|
SIM FUM
SIIF
SIM - Simmer & Jack Mines, Limited - First Uranium closes $106 750 000 bought
deal equity financing
Simmer & Jack Mines, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN Code: ZAE00006722
("Simmers")
FIRST URANIUM CLOSES $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") completed
its previously announced bought deal offering (the "Offering") of 15 250 000
common shares of First Uranium at a price of $7.00 per share for gross proceeds
of $106 750 000 on 1 June 2009.
The syndicate for the offering was led by Scotia Capital Inc. and included
Macquarie Capital Markets Canada Ltd., RBC Capital Markets, National Bank
Financial Inc. and Raymond James Ltd.
First Uranium has granted the underwriting syndicate an over-allotment option,
exercisable within the next 30 days, to purchase up to an additional 2 287 500
common shares at $7.00 per share to cover over-allotments, if any, and for
market stabilization purposes.
First Uranium intends to use the 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.
Following the closing of the Offering, Simmers` stake in First Uranium changed
from 41% to 37.24%, being 62 122 653 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
37.24%% 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:
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
2 June 2009
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 02/06/2009 11:50:02 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.
