Simmers - Simmers Gets Go-Ahead From DRDGold Credi
Simmers - Simmers Gets Go-Ahead From DRDGold Creditors
Simmer & Jack Mines, Limited
(Incorporated In The Republic Of South Africa)
(Registration Number 1924/007778/06)
Share Code: SIM ISIN: ZAE000006722
("Simmers" OR "THE COMPANY")
SIMMERS GETS GO-AHEAD FROM DRDGOLD CREDITORS
Creditors of DRDGold"s North West operations, which include organized labour,
today gave their stamp of approval to Simmer & Jack Mines, Limited (Simmers)
plans to acquire Buffelsfontein Gold Mines Limited (Buffels).
"At a meeting this morning creditors voted unanimously to approve the Section
3.11 Scheme of Arrangement whereby Simmers would acquire the entire issued share
capital in Buffels for a capital consideration of R45-million. The next step is
for the decision to be sanctioned by the High Court on October 19, 2005," said
Simmers chief executive, Gordon Miller.
The approval from creditors comes hours after permission from the Competition
Commission was granted for the arrangement.
"All that remains now is for the Department of Water Affairs and Forestry to
agree to the substitution of Simmers in place of DRDGold to assume
responsibility in future water pumping directives governing the apportionment of
the area"s water pumping costs.
"As soon as this has been agreed, Simmers can resume underground operations,
which will hopefully bring a measure of relief to the community which is still
reeling from the closure of the mines in March this year," said Miller.
The community of Stilfontein in the North West (where the Buffelsfontein and
Hartebeesfontein mines are situated) was thrown into turmoil on March 22 this
year when 6000 miners lost their jobs as a result of DRDGold placing the mines
under provisional liquidation.
In July this year, Simmers obtained permission from the provisional liquidators
to begin surface operations but, while this provided a morale boost for the
beleaguered community, the bulk of the miners remained unemployed as most of the
3 800 jobs which will be saved, are related to underground operations.
"The approval from the creditors is a critical step in the process of getting
this community back on its feet," added Miller. "Our main objective now is to
get the operations up and running safely and to start employing and training
people again."
At its peak, it is projected that the operations will produce some 230 000
ounces of gold per annum over the next ten years and employ 3 800 people.
Johannesburg
6 October 2005
FOR FURTHER INFORMATION, PLEASE CONTACT GAIL STRAUSS ON 084 777 4060
Date: 06/10/2005 04:27:23 PM Produced by the JSE SENS Department
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