SIM - Simmer and Jack Mines - Secures a forward gold sale agreement and settles
SIM
SIIF
SIM - Simmer and Jack Mines - Secures a forward gold sale agreement and settles
bridge loan
Simmer and Jack Mines Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN Code: ZAE000006722
("Simmers")
SIMMERS SECURES A FORWARD GOLD SALE AGREEMENT AND SETTLES BRIDGE LOAN
Simmers is pleased to announce that it has raised USD 20 million by way of a
forward gold sale through Deutsche Bank AG ("DB"). In terms of the agreement
between Simmers and DB, Simmers will deliver 2,030 ounces of physical gold a
month to DB for a 12 month period, starting November 2010. The quantum of
delivered ounces was determined with reference to a gold floor price of USD850
per ounce and DB will settle, in cash to Simmers, the difference between the
USD850 an ounce floor price and the spot price on the day of delivery up to a
maximum agreed price per ounce.
Simmers has used the proceeds from the gold forward sale to repay Rand Merchant
Bank, a division of FirstRand Bank Limited ("RMB"), an amount of R105 million
that remained outstanding under the bridge loan entered into with RMB during
April 2010. The remainder of the cash will be utilised for general business
purposes.
Johannesburg
19 November 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
For further information, please contact:
Marius Saaiman
Mobile +27 82 45 83 420
E-mail Saaiman@simmers.co.za
Date: 19/11/2010 07:30:00 Produced by the JSE SENS Department.
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