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SIM
SIIF
SIM - Simmer & Jack Mines, Limited - Update on completion of 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")
UPDATE ON COMPLETION OF TAU LEKOA ACQUISITION
On 17 February 2009 Simmers announced the acquisition of AngloGold Ashanti
Limited`s ("AngloGold Ashanti") Tau Lekoa mine ("Tau Lekoa") near Orkney in
the North West Province ("acquisition"). At the time, it was anticipated that
the earliest effective date for the completion of the acquisition would be on
or about 1 January 2010. However, the acquisition agreement did contemplate a
possible end date of 31 March 2010 which could be extended by agreement
between Simmers and AngloGold Ashanti.
All suspensive conditions to the acquisition save for the approval of the
Department of Mineral Resources ("DMR") for the transfer of the applicable
mining rights ("transfer"), have now been fulfilled. The application for the
transfer has been submitted to the DMR and DMR approval is now expected to
occur sometime during 2010. The anticipated earliest acquisition completion
date of 31 December 2009 will, as a result, not be achieved and the duration
of the interim period provided for in the acquisition agreement will therefore
be extended. Simmers and AngloGold Ashanti are currently in discussion
regarding the most appropriate arrangements to continue operating Tau Lekoa
during the extended interim period.
A further announcement to outline the details of these arrangements will be
made once the terms relating to the arrangements have been agreed upon. Both
Simmers and AngloGold Ashanti will maintain their close working relationships
with the DMR to ensure the acquisition is completed as soon as possible.
Simmers recently concluded an updated technical report for Tau Lekoa that
indicates significant potential cost benefits resulting from running Tau
Lekoa and Buffelsfontein Gold Mine as one entity. The acquisition includes the
Weltevreden resource ("Weltevreden project"), a shallow up-dip extension of
Tau Lekoa lying between 80 and 300 metres below surface. A pre-feasibility
study to confirm the viability of developing the Weltevreden project is
currently underway.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gail Strauss (Communications) +27 82 936 8481
Nick Goodwin (Investor relations) +27 83 629 8605
Macquarie First South Advisers
Melanie de Nysschen / Thembeka Mgoduso +27 11 583 2000
Brunswick (on behalf of Simmers)
Clemmie Raynsford +27 11 502 7400
Johannesburg
25 November 2009
MACQUARIE FIRST SOUTH ADVISERS (PTY) LIMITED
Sponsor
Date: 25/11/2009 09:31:01 Produced by the JSE SENS Department.
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