Simmers - 1st Uranium IPO in CanadaSimmers Announces First Uranium IPO in Canada By Gareth Tredway 16 Nov 2006 at 08:55 AM EST
Source:https://www.resourceinvestor.com/pebble.asp?relid=26255&phrase=simmersNotes: JSE = South Africa Stock Exchange:
https://www.jse.co.za/South African currency = ZAR CAD vs ZAR 1 ZAR = 0.157278 CAD 1 CAD = 6.35816 ZAR US vs ZAR 1 ZAR = 0.137193 USD 1 USD = 7.28900 ZAR
Trading data at the JSE: 52WH = 445 (69.99 CAD), 52WL = 75 (11.80 CAD), Last close = 434 (68.26 CAD) This IPO could only help the Canadian Uranium Industry - will spark interest - my thoughs? Comments are welcomed. ------------------------------------------------------------------------------------------------------------------------------------------------ JOHANNESBURG (I-Net Bridge) -- Simmer & Jack [
JSE:SIM], the gold and uranium development company, says it has filed a preliminary prospectus for an initial public offering (IPO) to list its First Uranium Corporation in Canada. “Proceeds from the IPO will be used primarily for funding the development and construction of two uranium and gold plants,” said the company in an announcement. The two projects, one a tailings dump retreatment project and the other a mothballed uranium and gold mine, will cost about $300 million to develop, according to the company. By 2010, combined annual production is expected to be 545,000oz of gold and 2.3 million pounds of uranium. “Management anticipates that these costs will be funded with a combination of the net proceeds of the IPO, the project finance funds and operating cash flow,” says the statement. Investec has agreed to finance a portion of the project provided that certain conditions are met, including, the successful IPO and a due diligence among others. Gordon Miller, Simmers and soon to be First Uranium chief executive, says it is too early to say how much money will be raised through the IPO but that Simmers will still control the listed company. At the underground mine, Ezulwini production of its first gold in the second quarter of next year and first uranium by 2008. At the tailings recovery, Buffelsfontein, first uranium production is expected in mid-2008. Treasury has approved the deal and Simmers says it is currently awaiting formal approval from the South African Reserve Bank (SARB). If all goes to plan the IPO will be completed by the end of the year. Simmer & Jack shares have more than quadrupled this year, up from R1.05 each at the start of the year to yesterday’s close of R4.44 each (US 62 cents). The company’s value has increased over the same time from R900 million to R4.3 billion ($600 million) yesterday. The domestic price of gold has increased by 38% this year to R144,881/kg ($20,255/kg), while uranium in rand terms is up 65% to R450/lb ($62). Once the assets have been placed in First Uranium, Simmers will still own its underground Buffelsfontein operation, its TGME mines and exploration assets, which are ramping up to produce 250,000oz combined in coming years.