Sorry I have to go out....
From Streetwire release...
SouthernEra continues to pursue its plan to diversify its interests. The company announced its intention to acquire a 54-per-cent stake in Messina Ltd., which holds a 100-per-cent interest in Messina Platinum Mines Ltd., for $10.5-million (U.S.). The $1-million prefeasibility study outlined reserves of 51 million tonnes containing nearly 11 million ounces of platinum group elements and gold. The study estimated an initial annual production of 120,000 oz of platinum group metals and gold, 1,400 tonnes of nickel, 850 tonnes of copper, and 27 tonnes of cobalt. The prefeasibility study indicated that after tax net income of $23-million was likely. The study was conducted at a time when base metals prices were near their lows, and the recent recovery from these levels will further enhance the project. Mr. Freeman said that the study assumed a price of $4,000 (U.S.) per tonne of nickel, and recent prices have been in excess of $6,500 (U.S.) per tonne. The study also used a platinum price of $400 (U.S.) for platinum, and $280 (U.S.) for palladium. While the platinum price is now lower, the difference should be largely offset by an increase in palladium. The current prices are near $370 (U.S.) per ounce for platinum, and $356 (U.S.) per ounce for palladium.
Mr. Jennings said that, "The feasibility study is due to be finished by mid-November", and he stated that SouthernEra did expect to exercise its option. The work undertaken since the earlier study has examined the mining methods to be used, and the earlier target of 60,000 tonnes per month has been increased to 80,000. As a result, 161,000 ounces of platinum group metals should be produced annually. A corresponding 33-per-cent increase in base metal production appears likely as well. This increase in rates of production, combined with higher metals prices, could significantly enhance the profitability of the project. At recent prices, the ore appears to have a value of approximately $75 (U.S.) per tonne.
After the acquisition is completed, an offer will be made to the minority shareholders, at the same terms as offered to Messina Holdings. SouthernEra believes that a considerable portion of the minority holdings will be offered, and estimates that the company's final interest in Messina Platinum will approach 70 per cent. Mr. Freeman said that from 10 to 15 per cent of Messina would be held by a black empowerment group, and the remaining share would continue to be held by some of the minority shareholders. SouthernEra currently plans to finance much of the project through debt financing with a syndicate of banks rather than through a large equity issue, although a rights offering on the Johannesburg Stock Exchange is possible.
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