| Wed 8 Jun 2011, 14:30 | | SIM - Simmer and Jack Mines Limited - Conclusion of a second forward gold sale |
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SIM
SIIF
SIM - Simmer and Jack Mines, Limited - Conclusion of a second forward gold sale
agreement and the repurchase and cancellation of notes issued under Simmers`
ABSA high yield note programme
Simmer and Jack Mines, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN Code: ZAE000006722
("Simmers")
CONCLUSION OF A SECOND FORWARD GOLD SALE AGREEMENT AND THE REPURCHASE AND
CANCELLATION OF NOTES ISSUED UNDER SIMMERS` ABSA HIGH YIELD NOTE PROGRAMME
Simmers is pleased to announce that its subsidiary, Buffelsfontein Gold Mines
Limited ("Buffels"), has raised USD25 million pursuant to a forward gold sale
agreement with Deutsche Bank AG ("DB"). This is the second such agreement
entered into between DB and Buffels. In terms of the agreement between Buffels
and DB, Buffels will deliver 3,600 ounces of physical gold a month to DB for an
18 month period, starting November 2011. Simmers` physical gold deliveries
benefit from a gold floor price of USD1,100 per ounce. In addition, Simmers
will participate in any additional upside from the spot price on the day of
delivery up to a maximum agreed price per ounce, which price is above the
current spot price of gold.
Buffels has also made an intra-group loan to Simmers of R159 million, which
Simmers has used to repurchase and cancel all of the notes, with a capital value
of R155 million, issued to investors under the ABSA high yield medium term note
programme.
Finally, Simmers and Village Main Reef Limited ("Village") have entered into an
agreement for the cession and assignment by Simmers of, among other things, all
its rights and obligations under the intra-group loan referred to above to
Village with effect from the disposal by Simmers of the majority of its assets
to Village pursuant to the proposed transaction concluded by Simmers and
Village. Simmers and Village have entered into the cession and assignment
agreement so that Simmers will be able to fully implement the proposed
transaction concluded by Simmers and Village.
Johannesburg
08 June 2011
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: 08/06/2011 14:30:01 Produced by the JSE SENS Department.
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