[miningmx.com] — Simmer & Jack Mines said on Thursday that it has agreed to sell its wholly owned subsidiary, Transvaal Gold Mining Estates (TGME) to Stonewall Mining for R25m.
The sale is subject to a number of conditions, which conditions must be fulfilled by no later than end February 2011.
TGME’s Mpumalanga-based gold mining operations have been under care and maintenance since March 2010. In terms of the agreement, Stonewall has assumed all care and maintenance costs as from 1 September 2010, the effective date of the transaction.
Simmers Interim CEO Nico Schoeman said: “Simmers’ stated priority now is the successful incorporation of the recently-acquired, cash-generative Tau Lekoa Mine and exploitation of synergies between Tau Lekoa and Simmers’ neighbouring Buffelsfontein Mine. The sale of TGME refines Simmers’ asset base in support of returning the company to profitability.”
The proceeds from disposal will assist in reducing Simmers’ current debt obligations, he added.
Stonewall CEO Lloyd Birrell said: “We are very pleased to have secured TGME. Its operations are at the heart of South Africa’s eastern Greenstone Belt, which is enjoying enormous renewed interest from junior gold exploration and mining companies such as ourselves.”
