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SIM
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SIM - Simmers - Competition Commission Approves Tau Lekoa Acquisition
Simmer & Jack Mines Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN Code: ZAE000006722
("Simmers" or the "Company")
COMPETITION COMMISSION APPROVES TAU LEKOA ACQUISITION
Johannesburg - Simmers announced today that the Competition Commission (the
"Commission") had issued a merger clearance certificate approving the merger
between Buffelsfontein Gold Mine Limited ("BGM") and the Tau Lekoa Mine,
inclusive of the Weltevreden and Goedgenoeg properties ("Tau Lekoa Mine"), a
division of AngloGold Ashanti Limited ("AngloGold"). The Competition Commission
approved the merger without conditions in terms of section 14(1)(b)(i) of the
Competition Act No. 89 of 1998.
"The news that the Competition Commission has unconditionally approved the
transaction brings us yet another step closer to concluding this Company-
transforming acquisition," said Gordon Miller, chief executive of Simmers.
Simmers entered into an agreement with AngloGold on 17 February 2009 to purchase
100% of Tau Lekoa Mine for a sum of R600 million. The deal, which is expected to
close on 01 January 2010, is subject to certain conditions precedent, one of
which was the receipt of written approval of the Commission for the transaction.
The merger between BGM and Tau Lekoa Mine fundamentally alters the risk profile
of BGM by providing robust cash flows over the next three years as BGM ramps up
to peak production.
As per AngloGold`s current production plan, Tau Lekoa is expected to produce
some 130 000 ounces per annum at cash costs of between R170 000 and R180 000 per
kilogram over the next three years. This excludes any potential up-side from the
fast-tracking of the Weltevreden project, a shallow extension of the Tau Lekoa
Mine. A pre-feasibility study on phase one of the Weltevreden project is on
track for completion in the third quarter ending 31 December 2009.
Johannesburg
3 September 2009
Sponsor
Macquarie First South Advisers (Pty) Ltd
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.
Queries:
Gail Strauss Nick Goodwin
+27 82 936 8481 (mobile) +27 83 629 8605 (mobile)
gail@simmers.co.za nick@simmers.co.za
Date: 03/09/2009 16:19:01 Produced by the JSE SENS Department.
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