SIM
SIIF
Simmer and Jack Mines, Limited - Shareholder update on the Jaganda negotiations
SIMMER AND JACK MINES, LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1924/007778/06)
Share code: SIM ISIN: ZAE000006722
("Simmers" or "the company")
SHAREHOLDER UPDATE ON THE JAGANDA NEGOTIATIONS - SIMMERS" BEE SHAREHOLDER TO
FOCUS ON OBTAINING MINING RIGHTS
Simmers today announced that majority BEE shareholder, Jaganda (Pty) Limited,
has informed the junior gold miner that it had put its unbundling plans on hold
in order to focus its attention on assisting Simmers management, through its
empowerment shareholder Vulisango, with their mining and prospecting rights
application process.
"Jaganda shareholders are no longer in negotiations to unwind their shareholding
structure, and Simmers will therefore cease to trade under a cautionary. Jaganda
has not ruled out the possibility of unbundling in the future, but at this stage
the shareholders have agreed that it makes better business sense to focus on
fast-tracking Simmers" mining rights and prospecting applications," said Simmers
CEO, Gordon Miller.
Miller added that while plans to unbundle and simplify the shareholding
structure of Simmers held many benefits and had the support of both the Simmers
and Jaganda boards, a long-drawn out process was not in the best interests of
Simmers: "While the strategy to achieve a broader and more democratic
distribution of shareholders has been delayed, I am delighted that Jaganda is
going to throw its full weight behind our mineral rights conversion and mining
right application process.
"This is a big year for Simmers - we have set ourselves aggressive targets in
order to sustain our production growth profile and it is in the company"s and
shareholders" best interests for the management team to focus on achieving those
goals this year with the help and support of our BEE partners," he said.
Jaganda, which currently holds a 44.6% stake in Simmers, is controlled by two
groups of shareholders - Vulisango, representing BEE interests, holds 100% of a
subsidiary which in turn holds 51% of Jaganda; and a voting pool which includes
some of Simmers" executive management, holds 49%. Miller said that Jaganda
shareholders had agreed to address the unbundling exercise again at a later
stage.
Johannesburg
3 February 2006
SPONSOR
SASFIN CAPITAL
(A division of Sasfin Bank Ltd)
Date: 03/02/2006 07:46:03 AM Produced by the JSE SENS Department
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