HomeGoldSimmer may buy Orkney

Simmer may buy Orkney

Pamodzi’s Orkney mine
– which may be purchased
by Simmers
Johannesburg, South Africa — MININGREVIEW.COM — 17 April 2009 – Gold and uranium producer Simmer & Jack Mines Limited (Simmers) is to make a decision within the next two weeks on whether to buy Pamodzi Gold Limited’s Orkney mine – currently in provisional liquidation.

“We are doing a feasibility study to see whether it’s viable at all, because you have to be very careful about what you own,” said investor relations executive Nick Goodwin in a telephone interview here with Bloomberg News. “Once all the information is together – by the end of next week or the week after – a decision can be made,” he added.

Bloomberg reports that, lacking funding, Pamodzi had its Orkney operations placed in provisional liquidation on 20 March, when trading of the company’s shares was also suspended.

“Pamodzi’s East Rand and Free State mines have since been placed under provisional judicial management, which allows court representatives to manage the operations and stave off claims from creditors while the company trades its way out of difficulty,” said SBT Trust lead liquidator Enver Motala.
“Should Pamodzi fail to secure new funds, the process could become quite drawn out,” Goodwin said. “The longer the mines are out of operation the more difficult it is to open them again,” he explained. “The price is going to be very important as well.”

The Orkney mine was previously owned by AngloGold Ashanti Limited, which sold it to African Rainbow Minerals Limited , before it was bought by Harmony Gold Mining Limited, Goodwin added.