TORONTO (miningweekly.com) - JSE-listed Simmer & Jack Mines has set up a special committee of directors to review its options with regard to the company's 37% holding in First Uranium, it reported on Friday.

Simmers also said that Vusi Khanyile had been elected chairperson and Bernard Swanepoel appointed deputy chairperson at a board meeting on Tuesday.

The investment committee, which will consider the First Uranium holding, is headed by Swanepoel and also includes Ralph Havenstein, David Brown, Suart Murray and Peter Sergey.

Earlier this week, First Uranium announced that it would curtail gold production and defer capital projects after the South African government withdrew and environmental permit to build a tailings storage facility at its Mine Waste Solutions operation.

"The investment committee is currently considering the various options available to Simmers to protect and optimise the company's investment in First Uranium," Simmers said in a statement on Friday/

"It is worth noting that the board has mandated the investment committee to actively work with First Uranium in finding sustainable solutions to its funding and permitting problems and this has been communicated to the First Uranium board."

First Uranium said in its announcement this week that it was reviewing strategic alternatives for financing.

In August last year, the miner received a one-year term credit facility of R160-million from shareholder Simmers, and it has also signed gold-streaming deals for a percentage of the gold production from both of its operations with Canada's Gold Wheaton.

Gold Wheaton, which has a contract to buy 25% of the gold produced at MWS at a fixed price, warned this week that the that the curtailment announced on Tuesday could trigger a $42-million penalty payment due to Gold Wheaton if the project does not pass a technical completion test by June 1.

First Uranium CEO Gordon Miller and chairperson Nigel Brunette held the same positions at Simmers until this month, when they agreed to step down under pressure from the company's empowerment partner Vulisango.

Meanwhile, Simmers also noted that it will publish financial results for the December quarter on February 19.

The firm's Buffelsfontein operation, which currently produces around 92% of the company's gold, performed in line with guidance, while the Tau Lekoa mine exceeded expectations during the quarter, Simmers said.

However, production at Transvaal Gold Mining Estates was lower than expected due to excessive
rainfall in the Mpumalanga region, which impacted on leaching operations.

Edited by: Liezel Hill

PS I also read a comment on stockchase to the effect yhat FIU has put itself up for sale .

Tec