Simmers' Tau Lekoa deal awaits closure
November 26, 2009
AngloGold Ashanti has confirmed that the sale of the Tau Lekoa mine, together with the adjacent Weltevreden and Goedgenoeg project areas near Orkney, to junior gold producer Simmer & Jack Mines (Simmers) is unlikely to be completed this year, the companies said in separate statements.
The companies had hoped that the deal would be sealed by end December this year with the earliest effective date being January 2010 and at end March 2010
at the latest.
"At this stage, all suspensive conditions to the sale have been fulfilled except for the approval of the Department of Mineral Resources (DMR) of the transfer of the applicable mining rights," AngloGold Ashanti said in a
statement.
The application for the transfer has been submitted, and DMR approval is now expected to occur sometime during 2010.
As a result the companies said that the anticipated earliest acquisition completion date would therefore not be achieved.
The duration of the interim period provided for in the acquisition agreement will therefore also be extended.
"Simmers and AngloGold Ashanti are currently in discussion regarding the most appropriate arrangements to continue operating Tau Lekoa during the extended interim period," Simmers said in its statement to the JSE.
Simmers recently concluded an updated technical report for Tau Lekoa that indicated significant potential cost benefits resulting from running Tau Lekoa and Buffelsfontein Gold Mine as one entity.
A pre-feasibility study to confirm the viability of developing the Weltevreden project is also currently underway.
|
|
