| Wed 20 Dec 2006, 16:15 | | SIM - Simmer & Jack Mines Limited - Withdrawal of |
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SIM
SIIF
SIM - Simmer & Jack Mines Limited - Withdrawal of Cautionary Announcement
Simmer & Jack Mines Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM & ISIN Code: ZAE000006722
First Uranium Corporation Completes C$203 Million Initial Public Offering
Withdrawal of Cautionary Announcement
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES
DESCRIBED HEREIN.
Simmer & Jack Mines Limited ("Simmer & Jack") is pleased to announce that
First Uranium Corporation (the "Company") has today completed its initial
public offering (the "Offering") of 29,000,000 common shares for gross
proceeds of C$203 million (approximately R1.264 billion). The Company`s
common shares begin trading today on the Toronto Stock Exchange under the
symbol "FIU".
The Offering was sold through an underwriting syndicate led by RBC Capital
Markets and including Canaccord Capital Corporation, National Bank
Financial Inc., GMP Securities L.P., Sprott Securities Inc., Orion
Securities Inc., Raymond James Ltd. and Wellington West Capital Markets
Inc. The Company has granted the underwriting syndicate an over-allotment
option to purchase up to 4,350,000 common shares at the price of C$7.00 per
share. The option is exercisable, in whole or in part, within the next 30
days to cover over-allotments, if any, and for market stabilization
purposes. If the option is exercised in full, gross proceeds of the
Offering will be approximately C$233 million.
Immediately prior to the closing of the Offering, the Company acquired from
Simmer & Jack, certain assets, including the shares of First Uranium
(Proprietary) Limited and Ezulwini Mining Company (Proprietary) Limited
("EMC"), pertaining to the proposed Ezulwini and Buffelsfontein uranium and
gold projects in South Africa (the "Reorganization"). The Ezulwini project
will involve the recommissioning of an underground uranium and gold mining
operation and the Buffelsfontein project will involve the construction of a
reprocessing facility to treat gold and uranium in tailings. Following the
completion of the Reorganization and the Offering, Simmer & Jack will hold
an approximate 69.6% interest in the Company (prior to the exercise of the
over-allotment option).
Gordon Miller, CEO of both Simmer & Jack and First Uranium, commented, "We
are very pleased with the outcome of the initial public offering. The
development plans for the Ezulwini and Buffelsfontein projects are
continuing on schedule and we remain focused on reaching our near-term
production objectives for the projects."
The net proceeds from the Offering will be used by the Company primarily to
fund the development of the Ezulwini and Buffelsfontein projects, including
the acquisition from a third party of certain surface and underground
assets relating to the Ezulwini mine. The net proceeds of the Offering will
also be used to repay to Simmer & Jack certain indebtedness incurred by
Simmer & Jack on EMC`s behalf in respect of the Ezulwini mine.
The securities described herein have not been registered under the United
States Securities Act of 1933 (the "U.S. Securities Act"), as amended, and
may not be offered or sold in the United States unless registered under the
U.S. Securities Act or unless an exemption from registration is available.
This announcement may contain or refer to forward-looking information based
on current expectations. Forward-looking statements are subject to
significant risks and uncertainties, and other factors that could cause
actual results to differ materially from expected results. These forward-
looking statements are made as of the date hereof and we assume no
responsibility to update or revise them to reflect new events or
circumstances.
For more information on First Uranium Corporation, please contact Gordon
Miller, Chief Executive Officer, on +27 82 808 9246 or Gail Strauss on +27
84 777 4060 / +27 11 830 0390.
A copy of the final First Uranium prospectus may be viewed on www.sedar.com
Withdrawal of cautionary
Simmer & Jack shareholders are referred to the cautionary announcements
dated 8 August 2006, 11 October 2006 and 27 November 2006, and are advised
that as Simmers has successfully concluded its proposed capital raising in
order to facilitate the development of its uranium and gold development
assets, caution is no longer required to be exercised by shareholders when
dealing in their securities.
Johannesburg
20 December 2006
Lead underwriter and South African Sponsor
manager to the IPO investment bank
RBC Capital Markets Investec Bank Limited Sasfin Capital
a division of Sasfin
Bank Limited
South African legal Canadian legal Reporting accountants
advisors advisors
Routledge Modise Fasken Martineau PricewaterhouseCoopers
DuMoulin
Independent technical
consultants
Roscoe Postle
Associates
Date: 20/12/2006 16:15:01 Produced by the JSE SENS Department.
