JOHANNESBURG (miningweekly.com) – Processes had begun to ensure the separating out of the operations of Simmer & Jack Mines (Simmers) and First Uranium, new Simmers nonexecutive chairperson Vusi Khanyile told Mining Weekly Online at the weekend.

Khanyile described the need to "reconfigure" the relationship between Simmers and First Uranium as "critical" and said that the separation would be completed "as soon as possible".

Former Simmers chairperson Nigel Brunette and former Simmers CEO Gordon Miller, who have both relinquished their Simmers board positions, have retained those same positions on the First Uranium board.

Khanyile added that Simmers, as the largest single shareholder in First Uranium, was guiding, monitoring and supporting First Uranium towards achieving its own objectives.

He said that the operational separation of the gold and uranium companies was a board matter and would not be something that would be put to the extraordinary general meeting (EGM) on February 1, where the 16 resolutions that would be tabled all related to the re-election of recently appointed directors to the interim Simmers board, and the appointment of directors that the Oryx, Hermes and Xelexwa shareholding was proposing. Since September, eight directors have resigned from the Simmers board.

By ensuring the separation of the JSE-listed Simmers from the TSX- and JSE-listed First Uranium, the new board was responding to the needs to the shareholders, Khanyile said.

Disgruntled empowerment partner Vulisango, which co-requisitioned the EGM as Xelexwa, has the opposite view on the Simmers-First Uranium separation, however.

Vulisango CE Valence Watson told Mining Weekly Online that, on the contrary, he regarded it as vital that the group's gold and uranium assets were merged rather than separated and viewed it as best that Simmers and First Uranium were brought together at this juncture.

"They're both small companies and putting the two together would create something with a bit more muscle," Watson commented to Mining Weekly Online.

On February 1, the interim Simmers board will propose the re-election of Khanyile as its nonexecutive chair, as well as the re-election of its nonexecutive independent directors made up of the former Anglo Platinum CEO Ralph Havenstein, Metmar chair Colin Brayshaw, Passenger Rail Agency CFO Sindi Koyana, Cidel Bank CEO Adrian Meyer and Gordon Institute of Business Science extraordinary professor Nick Segal.

Shareholders Oryx, Hermes and Xelexwa are proposing former Harmony Gold CEO Bernard Swanepoel as nonexecutive chair; and Impala Platinum CEO David Brown, Aquarius CEO Stuart Murray, former Africa Rainbow Minerals coal division executive William Osae, former Iscor, Harmony and Rand Uranium dealmaker De Wet Schutte and Nampak and Freeworld Coatings Peter Surgey as independent nonexecutive directors.

Both shareholder factions appear to be at one with the Deon van der Mescht continuing to serve as CEO, as well as Gerhard Jacobs continuing to serve as CFO.

"I am hoping that the EGM will be a critical milestone that the company will go through to ensure its cohesiveness," Khanyile said.

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