JOHANNESBURG (miningweekly.com) – Gold and uranium producer Simmer & Jack Mines (Simmers) has raised R110,5-million to complete the integration of the newly acquired Tau Lekoa mine into the Buffelsfontein gold mine.

The producer announced on Thursday that it had placed 49,3-million ordinary shares, or 4,65% of the company’s issued share capital, with about 11 local and institutional shareholders for cash.

In February, South African gold major AngloGold Ashanti agreed to sell the Tau Lekoa mine, including the Weltevreden and Goedgenoeg properties, to Simmers for R600-million.

The acquisition would allow Simmers to become a midtier gold-miner, with the properties adding about 130 000 oz/y of gold to Simmers’ production profile.

“The acquisition of Tau Lekoa is a superb accretive opportunity. It underpins the significance of the Buffelsfontein gold mine and establishes Simmers as a midtier producer, with the corresponding potential for a market rerating,” commented Simmers CEO Gordon Miller.

The company would spend R45-million on the integration of the ore-handling capabilities, logistics and other mine systems at the Tau Lekoa and Buffelsfontein gold mine operations.

Further, a feasibility study at the Weltevreden property would be conducted at a cost of R45-million, while a R10-million prefeasibility study would be undertaken at the Goedgenoeg property.

Simmers stated that the two properties offered the possibility of further upside.

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