SouthernEra Subsidiary Messina Platinum Amends Terms of Rights Issue
Shares Issued and Outstanding: 61,674,459
TSX: SUF
AIM: SRE
TORONTO, Aug. 12 /CNW/ - SouthernEra Resources reported today that its
subsidiary Messina Limited has amended the terms of the rights offer
previously announced on July 22. Under the amended terms, Messina has
announced that it will raise approximately R270,7 million (US$36.6M) by way of
a rights offer of ordinary shares in Messina at a price of R60 per share.
SouthernEra Resources has agreed to underwrite the new Messina rights issue by
exercising rights not taken up by minority shareholders.
The proceeds from the exercise of the rights will be used by Messina to
reduce its unsecured debt obligations to SouthernEra, which as of June 30,
2002 totaled R313,740,000 (US$41.5M). SouthernEra advanced these funds to
Messina to finance the construction and development of the recently
commissioned Phase 1 mine, as well as feasibility and pre-feasibility studies
at Phases 2 and 4, respectively.
Commenting on Messina's announcement, SouthernEra President and CEO,
Patrick Evans, said: "The terms have been amended in order to minimise the
costs associated with the rights offer. By underwriting this rights issue,
SouthernEra could increase its ownership in Messina Limited depending on the
level of participation by minority shareholders. Given the strong growth
profile of Messina, with construction of the next phase set to commence during
2004, SouthernEra expects to provide further financing to Messina over the
next year. This could result in further Messina rights issues to convert
future shareholder loans to equity."
The rights issue is subject to South African regulatory approval.
SouthernEra Resources Limited is an independent producer of platinum
group metals and diamonds. The Company also has an extensive PGM and diamond
exploration program. The common shares of SouthernEra are traded on the
Toronto Stock Exchange (SUF) and the London Stock Exchange's AIM (SRE).
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For further information: SouthernEra Resources Limited: Mr. Patrick
Evans, President and CEO, Telephone: (416) 359-9282, Fax: (416) 359-9141,
e-mail: inbox@southernera.com
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