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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: PHILLIP FLOTOW who wrote (6621)	6/5/2001 3:06:21 PM
From: PHILLIP FLOTOW	Respond to of 7235

Attention Business Editors: Messina Debt Financing Approved TORONTO, June 5 /CNW/ - Messina Limited. ("Messina"), a 70.4% owned subsidiary of SouthernEra Resources Limited, announced today that Rand Merchant Bank ("RMB"), as Lead Arranger, has approved its participation in a R345 million debt financing to complete construction and start-up of its 100% owned Messina Platinum Group Metals ("PGM") project in South Africa. Messina also announced that it has reached an agreement in principle with a major international automotive company to supply floor-price protection for both platinum and palladium production within the framework of an off-take contract. SouthernEra President and CEO Patrick Evans said, "this financing is a major step forward for SouthernEra toward securing its role as one of the leading producers of platinum group metals. While arranging this financing we have also managed to continue the development and construction of the Messina Platinum Mine and have accelerated first production to August of this year." Peak funding requirements for the project, exclusive of the costs of the Accelerated Production Initiative ("API") plant, are estimated to reach R488 million, or approximately US$61 million at the current exchange rate. The R143 million project funding balance will be made up of: (i) R25 million in expenditures already made by Messina on project construction; (ii) R60 million expected to be provided by a Messina rights issue of which SouthernEra has agreed to subscribe to at least its 70.4% share from proceeds of its recently completed equity financing; and (iii) R58 million in cash flow to be generated by the API during the construction period. Funding for the API has already been independently secured by way of an unsecured subordinated loan through a major South African public company. The syndicate of banks have agreed in principle to provide a R75 million completion guarantee. Finalization of the loan is subject to satisfying conditions of draw down including: (i) finalization of the floor-price agreement with the automotive company on terms acceptable to RMB; (ii) final approval of the completion guarantee; and (iii) funding of, or acceptable guarantees for, the R143 million of equity noted above. Under the terms of SouthernEra's acquisition of Messina from Impala Platinum Holdings Limited, Impala's wholly owned subsidiary, Impala Refining Services Limited ("IRS"), will smelt and refine Messina's PGM concentrate and purchase the resulting metal production. Accordingly, the floor-price protection agreement referred to above will also require final approval by IRS. SouthernEra Resources Limited is a diamond mining and exploration company and an emerging platinum group metals producer. The common shares of SouthernEra are traded under the symbol SUF on the Toronto Stock Exchange. The common shares of Messina are traded on the Johannesburg Stock Exchange under the symbol MES. -30- For further information: PLEASE CONTACT: SouthernEra Resources Limited, Patrick C. Evans, President and CEO; or Rudi P. Fronk, Director, at Telephone: (416) 359-9282, Fax: (416) 359-9141, e-mail: inbox@southernera.com PHIL