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Simmers - Stilfontein celebrates as Simmers gets High Court go ahead
Simmer and Jack Mines, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
("Simmers" or "the company")
Share code: SIM
ISIN: ZAE000006722
STILFONTEIN CELEBRATES AS SIMMERS GETS HIGH COURT GO AHEAD
There were jubilant scenes in the West Rand town of Stilfontein today when it
was announced that the High Court had sanctioned Simmer & Jack"s bid to acquire
Buffelsfontein Gold Mines Limited (Buffels) from the provisional liquidators of
DRDGold"s North West operations.
"High court approval means the deal is done and we will resume underground
operations tomorrow," said Simmers chief executive, Gordon Miller.
At its peak, it is projected that the operation will produce some 230 000 ounces
of gold per annum over the next ten years and employ 3 800 people. The success
of Simmer & Jack Buffelsfontein is predicated on a gold price of US$420 per
ounce and a Rand/ Dollar exchange rate of R6.3 (R85 000/kg).
Miller says the High Court ruling signals the end of seven months of hardship
and suffering by the community of Stilfontein which began when DRDGold placed
its North West operations under provisional liquidation on 22 March 2005,
leaving 6000 workers and their families destitute.
"We are grateful for the support our proposal has received from regulatory
bodies like the Ministries of Minerals and Energy, Water Affairs and Forestry
and the Competition Commission and from organized labour, creditors, the
provisional liquidators and DRDGold.
"We now have all the ingredients to make this a commercial success - the
funding, the expertise, and crucially, support from the local community," said
Miller.
In terms of the arrangement with the liquidators that was approved by the court,
Simmers will acquire Buffels for R45-million. The Department of Water Affairs
and Forestry has agreed that Simmers can take over Buffels" responsibility for
its portion of water pumping costs going forward.
Past liabilities relating to de-watering issues will continue to rest with
DRDGold.
First on the agenda for Simmer & Jack Buffelsfontein (as the new asset will be
known) will be training. According to GM, Deon van Der Mescht, the focus will be
on safety and upgrading of skills.
FOR FURTHER INFORMATION, PLEASE CONTACT LUCY CORKIN ON 082 850 4774 OR GAIL
STRAUSS ON 084 777 4060
Johannesburg
20 October 2005
SPONSOR
SASFIN CORPORATE FINANCE
A DIVISION OF SASFIN BANK LIMITED
Date: 20/10/2005 05:36:05 PM Produced by the JSE SENS Department
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