| Thu 9 Sep 2010, 8:00 | | SIM - Simmer & Jack Mines Limited - Simmers agrees to sell TGME |
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SIM
SIIF
SIM - Simmer & Jack Mines, Limited - Simmers agrees to sell TGME
Simmer & Jack Mines, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN Code: ZAE000006722
SIMMERS AGREES TO SELL TGME
Simmer and Jack Mines, Limited ("Simmers") announced today that it has agreed to
sell to Stonewall Mining (Pty) Limited ("Stonewall"), its wholly owned
subsidiary, Transvaal Gold Mining Estates Limited ("TGME") for R25 million. The
sale is subject to a number of conditions, which conditions must be fulfilled by
no later than 28 February 2011.
TGME`s Mpumalanga-based gold mining operations have been under care and
maintenance since March 2010. In terms of the agreement, Stonewall has assumed
all care and maintenance costs as from 1 September 2010, the effective date of
the transaction.
Simmers Interim Chief Executive Officer Nico Schoeman said: "Simmers` stated
priority now is the successful incorporation of the recently-acquired, cash-
generative Tau Lekoa Mine and exploitation of synergies between Tau Lekoa and
Simmers` neighbouring Buffelsfontein Mine. The sale of TGME refines Simmers`
asset base in support of returning the company to profitability. The proceeds
from disposal will assist in reducing our current debt obligations."
Stonewall Chief Executive Officer Lloyd Birrell said: "We are very pleased to
have secured TGME. Its operations are at the heart of South Africa`s eastern
Greenstone Belt, which is enjoying enormous renewed interest from junior gold
exploration and mining companies such as ourselves."
Johannesburg
9 September 2010
For further information, please contact:
James Duncan Investor Relations
Mobile +27 82892 8052
E-mail james@rair.co.za
SPONSOR
RAND MERCHANT BANK (A division
of FirstRand Bank Limited)
Date: 09/09/2010 08:00:28 Produced by the JSE SENS Department.
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