HomeGoldSimmers Pamodzi offer has lapsed

Simmers Pamodzi offer has lapsed

Pamodzi gold mine
in the Free State
 
Johannesburg, South Africa — MININGREVIEW.COM — 18 June 2009 – Emerging South African gold and uranium producer Simmer and Jack (Simmers) says its offer for Pamodzi Gold’s Orkney mine has lapsed.

At a presentation to investors here, Simmers CEO Gordon Miller said the company had complied with a timeline set by the liquidators to submit a bid that was valid until last Friday. “We have not been selected as the preferred bidder, so our offer has lapsed. We are not exactly sure what the current situation is and whether the bidding process will start again,” he added.
 
Miningmx quotes a Simmers source as saying that the liquidators had been trying to get Simmers to increase its bid, which the company was not prepared to do. The source pointed out that market conditions were constantly changing, which would affect any future bid.

Replying to questions at the Simmers presentation, Miller stressed the need for a swift decision over the future of the Orkney mine because of the increasing extent of damage that took place in underground workings the longer a mine was left standing idle.

“A mine deteriorates when it is left standing and these are complex underground workings,” he added. “You also lose the people who used to work there and know the mine. You have to keep in mind that this mine failed during a period of record rand gold prices.”

Miller said Simmers would only do a deal that was value accretive for its shareholders. He declined to disclose the details of the offer that had been made.
 
“We are not sure where the process will go next, because the fuse has burnt out.” Miller said the attraction of Orkney was that its operations sat close to Simmers’ Buffelsfontein mine, which had sufficient spare milling capacity to treat the additional production.

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