|
SIM
SIIF
SIM - Simmers Board Approves Funding Alternatives to Rights Offer; Restructured
Bridge Loan Agreement and Withdrawal of Cautionary Announcement
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")
SIMMERS BOARD APPROVES FUNDING ALTERNATIVES TO RIGHTS OFFER; RESTRUCTURED BRIDGE
LOAN AGREEMENT AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
On 6 June 2010 shareholders were advised by way of a SENS announcement that the
Simmers board was reviewing alternative funding options to the proposed rights
offer of R360 million senior secured convertible bonds ("Rights Offer") as
announced on SENS on 28 April 2010 and in the press on 29 April 2010.
On 17 April 2010, Rand Merchant Bank, a division of FirstRand Bank Limited
("RMB") extended a R220 million Bridge Loan ("Bridge Loan") to the Company to
part-finance the investment by the Company in the First Uranium secured
convertible Rand notes issued by Mine Waste Solutions (Proprietary) Limited
("Rand FIU Notes") as part of the First Uranium recapitalisation programme.
As indicated to shareholders in the SENS announcement on 29 June 2010 dealing
with the financial results for the fourth quarter ended 31 March 2010, Simmers
has issued R100 million JSE Limited listed domestic medium term notes ("DMTN
Notes"). The Simmers` DMTN Notes programme allows for a further R150 million of
DMTN Notes to be sold to investors.
The Simmers board wishes to advise shareholders that pursuant to consideration
of the various funding options, that it has resolved not to proceed with the
Rights Offer, but rather to proceed with a combination of issuing further DMTN
Notes and the sale of a portion of the Rand FIU Notes (collectively the "fund
raising").
The Simmers board is confident that it will be able to settle the Bridge Loan
and increase its cash reserves through the selected fund raising options in
conjunction with the cash to be generated from the operations over the next 6
months. The fund raising will limit the length of time Simmers` assets will be
granted as security and in addition there will be no dilutionary impact on
Simmers` shareholders.
Simmers and RMB have agreed to restructure the RMB Loan ("Restructured Bridge
Loan") pursuant to the fund raising. The legal agreements are in the process of
being amended. The key terms of the Restructured Bridge Loan are as follows:
- A capital payment of R100 million to be made by 31 July 2010;
- Four equal instalments of R30 million to be made monthly commencing from
September 2010; and
- Interest will be paid at 1 month Jibar plus 7% payable monthly in arrears.
Withdrawal of cautionary announcement
As shareholders have been provided with all the information relating to the fund
raising, caution is no longer required by shareholders when dealing in their
Simmers shares.
Johannesburg
06 July 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 06/07/2010 16:02:01 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.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
