Simmer & Jack Mines Limited - Simmers Enters Into Interim Agreement With
Provisional Liquidators
Simmer & Jack Mines Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM & ISIN: ZAE000006722
Issued by Simmer & Jack Mines Limited
07 July 2005
For immediate release
SIMMERS ENTERS INTO INTERIM AGREEMENT WITH PROVISIONAL LIQUIDATORS
Johannesburg -- Simmer & Jack Mines, Limited (Simmers) is a major step closer to
resuming underground operations at DRDGold`s former NW operations. The junior
gold miner today entered into an interim agreement with the provisional
liquidators in terms of which Simmers will begin maintenance and preparatory
work. Simmers will pay the holding costs of the provisional liquidators (less
the contributions received from other mining companies in respect of pumping
costs pursuant to Government directives), and in exchange Simmers will be
entitled to process the dumps on behalf of the provisional liquidators, the
proceeds of which will be utilised to off set the holding costs.
`This is a precursor to the acquisition agreement which is still some way off in
terms of regulatory approval. Given the humanitarian crises unfolding in
Stilfontein as a result of the mines being closed, we have been trying to speed
up the process so that we can begin employing people to treat the surface
material. This interim agreement gives us the opportunity to do so,` said
Simmers chairman, Roger Kebble.
The holding costs during this interim period will be borne by Simmers but will
be deducted from the purchase price of R45-million up to a maximum of R20
million.
`We are still in negotiations with the provisional liquidators with a view to
finalising the acquisition agreement, which requires prior approval by the
Competition Board and the Department of Minerals and Energy, but at least we can
now get on with the basics in anticipation of the deal going through,` said
Kebble.
According to Simmers CEO, Gordon Miller, the company will begin by treating the
surface material which will generate revenue to help off-set the holding costs,
which include hostel expenses and water and electricity supply to the mine
accommodation and off-site houses.
Simmers has already got the green light from organised labour, having entered
into new, restructured conditions of employment with Solidarity, SAEWA (South
African Equity Workers Association), UASA (United Association of South Africa)
and the National Union of Mine Workers (NUM).
When full operations are resumed, the company anticipates providing employment
for approximately 3 800 people and extending the life of the mine by another
decade.
Ends
CONTACT DETAILS
SIMMER & JACK: GAIL STRAUSS ON 084 777 4060
Date: 07/07/2005 03:15:41 PM
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