JOHANNESBURG (miningweekly.com) – Engagement with disgruntled black economically empowered shareholder Vulisango would continue in order to resolve differences, JSE-listed Simmer & Jack (Simmers) chairperson Nigel Brunette told Mining Weekly Online on Monday.

"They're a big shareholder ...and we want them to be part of what we do, but there are rules, and all of us have to follow those rules. That's the challenge ahead, and that's where I will be directing my attention," Brunette added to Mining Weekly Online, after the company's shares fell more than 5% on the JSE, the day's low being R1,75 a share.

Simmers directors Kevin Wakeford, Baba Njenje, Siviwe Mapisa and Ayanda Sisulu-Dunstan resigned from the company's board at the weekend.

Wakeford told Mining Weekly Online that both sides in the dispute could benefit if all parties accepted a new style of governance and board management and a new vision for the company that would unlock shareholder value.

"The bottom line is the unlocking of value, without sacrificing key corporate governance principles," Wakeford said.

Simmers CEO Gordon Miller told Mining Weekly Online that both Simmers' gold division and its First Uranium subsidiary were poised for strong gold growth.

"The gold business is about to double in size in the next three months with the acquisition of Tau Lekoa," Miller enthused.

Beyond Tau Lekoa, the Weltevreden project was being advanced to prefeasibility stage, which would add to the growth profile of Simmers' gold division.

First Uranium's Mine Waste Solutions project had just doubled in size from a gold point of view and, at the end of the year, would commission its uranium plant, which would add to top-line revenue.

First Uranium would add the third and final module of the gold plant in June next year, which would be completed and run for 15 years.

"In its current form, it is the largest single-site tailings processing facility and its going to grow," Miller added.

There were thus strong near-term growth prospects for the company, but against the background of the challenge of the strong rand, which was increasing the cost of building projects.

As the projects were being built with dollars, rand strength had resulted in cost increases, which had narrowed the margins.

Miller said that Simmers was "very focused" on transformation and was significantly in advance of the milestones that had been set out in the Mining Charter, as compared with its competitors.

Historically disadvantaged South Africans would be appointed to replace the directors who had resigned.

Said Brunette: "We are confident that we have the right management in place and the right strategic plans and the right capital structure to continue. However, there is clearly a need to address what has been happening on the board and that has now to move to a level we engage with Vulisango to ironout differences."

On appointing new directors to replace those who had resigned, Brunette said: "The way we will go forward is to convene the nominations and governance committee again, and draw up a list of criteria for what we need from a director.

"That will then go to professional headhunters who will then assimilate a list of apropriate people and that list will be put before the board," he added.

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