Simmers - Progress report on the Randfontein 4 sha
SIM
SIIF
Simmers - Progress report on the Randfontein 4 shaft mining rights application
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")
PROGRESS REPORT ON THE RANDFONTEIN 4 SHAFT ("4 SHAFT") MINING RIGHTS APPLICATION
Shareholders are referred to the press release dated 7 February 2006 and
published on SENS regarding, inter alia, the application for the mining rights
to 4 Shaft submitted to the Department of Minerals and Energy ("DME") in May
2005, and are herewith updated as follows:
* As already stated, the DME accepted the application in May 2005. As defined
in the Mineral and Petroleum Resources Development Act 28/2002 ("MPRDA"),
"acceptance" is a specific initial step in the overall process of the DME in
dealing with any application and serves to indicate the prominent position of
the applicant in relation to being granted the particular mining right.
* Simmers has since concentrated on meeting the DME"s further requirements,
particularly those relating to environment, labour and social plans, as well as
the disposal of underground water arising in the workings.
* A further part of the normal application process relates to the DME being able
to make requests for further information - this the DME has done and, in each
case, Simmers has provided the required additional or updated information.
* One such update involved providing the DME with Simmers" adjusted BEE
shareholding position. At the time of the initial submission, Simmers" BEE
shareholding was 51%. The rights issue and share placements since have reduced
the BEE shareholding to approximately 44%.
* The minimum BEE requirement for Simmers" 4 Shaft mining rights application is
26% in terms of the MPRDA. Having a BEE shareholding that has fallen below the
level of 51% therefore in no way affects the "acceptability" of the application.
* The DME has provided no indication of any other factor that may influence the
status of the application negatively.
* Although the DME process prescribes time lines, any request for information
effectively suspends the countdown. Hence, the company"s anticipated date for a
final ruling from the DME has had to be delayed from February 2006 to a current
expectation of the second quarter of 2006.
* The company has received no information or indication to warrant a change to
its stated public expectation that the mining rights to 4 Shaft will be granted
to Simmers.
Johannesburg
10 March 2006
SPONSOR
SASFIN CAPITAL
(A division of Sasfin Bank Ltd)
Date: 10/03/2006 01:25:08 PM Produced by the JSE SENS Department
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