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Simmers - Acqusition announcement and withdrawal of cautionary
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
ACQUISITION OF BUFFELSFONTEIN SHARES FROM DRDGOLD LIMITED
WITHDRAWAL OF CAUTIONARY
Introduction
Shareholders are referred to the cautionary announcements published on SENS on
26 April 2005, 25 July 2005, 2 September 2005 and 17 October 2005 wherein it was
stated that that the board had signed an agreement with DRDGOLD Limited ("DRD")
to purchase the entire issued share capital of Buffelsfontein Gold Mines
Limited, which is in provisional liquidation ("Buffelsfontein"), and commonly
known as the North West Operations ("NWO") ("the acquisition") for R1.00 (one
rand).
According to the scheme of arrangement proposed by Simmers the company will pay
the consideration of R45-million to conclude the acquisition, to be settled in
cash. The effective date of the acquisition was 22 October 2005.
The acquisition was conditional on the majority of Buffelsfontein creditors
accepting the proposed Simmers scheme of arrangement which was obtained.
Rationale of the Acquisition
When DRDGold placed Buffelsfontein into liquidation, Simmers management, who
were familiar with the North-West operations, believed that there was a
tremendous opportunity to create a new marginal mine producer in the form of
Simmer and Jack Mines, Limited if it was able to acquire the North-West mines.
This would require starting the mines afresh, with new labour contracts and no
creditors, which was an opportunity which the liquidation presented.
The forecast of 220 000oz per year gold production strengthened the belief that
this presented a turn around situation. Subsequent events have proven this to be
correct, and the sharp increase in the rand gold price has benefited the restart
of operations, both on surface and underground. In addition the uranium
potential of the mines is currently the subject of a feasibility study, for
which foreign funds have been raised.
Financial Effects
The financial effects for the acquisition are immaterial.
Withdrawal of cautionary
Shareholders are therefore advised that caution is no longer required to be
exercised when dealing in their securities.
Johannesburg
30 November 2005
SPONSOR
SASFIN CAPITAL
A DIVISION OF SASFIN BANK LIMITED
Date: 30/11/2005 03:50:04 PM Produced by the JSE SENS Department
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