Simmers goes to court to stop meeting

I-Net Bridge | Fri, 27 Nov 2009 09:57
[miningmx.com] -- Junior gold producer Simmer & Jack Mines (Simmers, SIM) on Thursday said it had launched a High Court application seeking to stop Xelexwa Investment Holdings and its joint provisional liquidators from convening a meeting to remove the directors of its company.

Xelexwa is the company through which Simmers black economic empowerment partner Vulisango Holdings held its Simmers shares.

Simmers said in a statement to the JSE that it was seeking clarification on the validity a notice it received on November 16 advising that a notice had been served on November 13 where Xelexwa's joint provisional liquidators said it planned to requisition a general meeting of Simmers shareholders.

In terms of the application launched in the South Gauteng High Court, Simmers is applying for an interim order on an urgent basis on December 1 to interdict and restrain Xelexwa and the Xelexwa's liquidators from convening or holding a general meeting of Simmers shareholders and from tabling a resolution to remove any director of the company.

The company is effectively seeking a High Court order declaring the requisition of no force and effect.

"Simmers is seeking clarity from the court as to the legal authority of the Xelexwa liquidators to requisition the general meeting," the company said.

"The fact of Xelexwa's liquidation raises concerns about the status of Xelexwa's holding company, Vulisango Holdings, Simmers believes that it is in the interest of shareholders that there is clarity and transparency around the parties and entities who are seeking to gain control of the Simmers board of directors, more so as this relates to the actions and obligations of parties who may be acting in concert to give effect to this change of control at Simmers board level," it added.

Simmers has been involved in an ongoing battle with Vulisango for more than three years.

Vulisango, which earlier failed to prevent Simmers from acquiring Tau Lekoa from AngloGold Ashanti (ANG), has already been frank about the fact that it wants current Simmers CEO Gordon Miller and current chairperson Nigel Brunette removed, along with directors John Berry and Adrian Meyer.

At the same time Vulisango has proposed that former Harmony Gold CEO Bernard Swanepoel be appointed as non-executive chairperson, along with new independent non-executive directors, Impala Platinum CEO and former Simmers independent director David Brown; Aquarius CEO and former Simmers independent director Stuart Murray; and former Africa Rainbow Minerals coal division executive William Osae.

The stock has shed 7% or 22 cents this month to date.