HomeGoldSimmers looking at Pamodzi's Orkney assets

Simmers looking at Pamodzi’s Orkney assets

Number 10 shaft
at Simmer & Jack’s
Buffelsfontein Gold
Johannesburg, South Africa — MININGREVIEW.COM — 14 April 2009 – Emerging South African gold and uranium group Simmer & Jack Mined Limited (Simmers) has expressed a possible interest in acquiring certain of troubled Pamodzi Gold Limited’s Orkney mining assets.

In an e-mailed response to questions from Bloomberg News, Simmers said: “If the business can be restructured – and if it makes economic sense for us to acquire any portions with upside potential – we would consider it.”

“Pamodzi’s Orkney business model has failed despite the favourable gold price environment, which in our view is a clear indication that the entire business needs to be fundamentally restructured,” said Simmer’s gold division managing director Deon van der Mescht in the e-mail. “There may be synergies between Orkney and Simmer’s nearby Buffelsfontein gold mine,” he added.

Because of a lack of funding, Pamodzi had its Orkney operations placed into provisional liquidation on 20 March, when trading of its shares in Johannesburg was also suspended. The company’s East Rand and Free State units have since been placed under provisional judicial management.

Pamodzi told SBT Trust Limited liquidator Enver Motala that it might receive funding through Venezuelan government bonds, among other foreign sources, he said in a CNBC Africa television interview.

“When we receive the money, we’ll give interviews,” Pamodzi CEO Peter Steenkamp said in a mobile phone interview. Pamodzi earlier said it was awaiting a R200 million loan from a company called Best Rock Investments LLP.

Bloomberg reports that Simmers gained 10 cents, or 4%, to R2.60 before the Easter weekend, giving the company a value of R2.9 billion.