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Tuesday, 24th October 2006 (3242 views)

Simmer & Jack, the South African midtier miner, has purchased Ezulwini mine and its infrastructure from Harmony Gold for around £3.8 million.

Production at the Ezulwini mine, formerly Randfontein Estates Number Four Shaft, is to begin in 2007 and Simmer & Jack is currently conducting a feasibility study to assess the potential re-opening of the shaft that was used by Harmony Gold.

Recent studies show that resources of 3.1 million ounces of gold are prevalent at the mine and the deal includes the acquirement of land that could be used for the further development of new facilities.

Simmer & Jack's CEO Gordon Miller remarked: "On conclusion of the conditions precedent to this agreement, Simmers will own the equipment and infrastructure required to make the mine operational again."

"The agreement with Harmony also provides for the transfer of the environmental liabilities related to the Four Shaft assets and funds to be used for the establishment of the new environmental trust fund required by the DME [Department of Mineral and Energy]."

The South African government's Department of Mineral and Energy granted Simmer & Jack conditional approval for mining rights at the mine in May this year.

 

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