SouthernEra closes transaction to increase stake
SouthernEra Closes Transaction to Increase Stake in
Johannesburg-listed Messina Platinum to 91.5 Percent
Shares Issued and Outstanding: 85,254,411
TSX: SUF
AIM: SRE
TORONTO, June 28 /CNW/ - SouthernEra Resources Limited announced today
that it has finalized an agreement with a consortium of Messina Limited
shareholders to acquire 3,700,536 Messina shares representing 18.4 percent of
Messina's issued and outstanding shares. The successful conclusion of this
transaction now increases SouthernEra's ownership in Messina Limited to
approximately 91.5 percent.
In acquiring these Messina Limited shares, SouthernEra has issued
10,546,528 of its own common shares, representing 12.4 percent of
SouthernEra's issued and outstanding shares. The shares issued by SouthernEra
are subject to a one-year hold period.
SouthernEra President and CEO Patrick Evans said that the transaction is
strongly accretive to SouthernEra. 'For the past several years, we have been
pursuing different strategies to increase our ownership in Messina Platinum.
The equity dilution resulting from this transaction is more than offset by the
increase in ownership of Messina. We are very pleased this transaction has now
been finalised and we welcome the Messina consortium as new shareholders of
SouthernEra.'
Messina Limited is listed on the Johannesburg Securities Exchange (JSE)
and has 100 percent control of three platinum lease areas (Voorspoed,
Doornvlei and Zebediela) at the Greater Messina Platinum Project. SouthernEra
acquired control over Messina Limited in 2000. Over the past four years the
Company has financed and built the first of three mines at the Phase 1
Voorspoed Section, which is now more than half way to full production. In
addition, in 2002 the Company concluded a feasibility study over the Doornvlei
Section and was subsequently issued a mining license.
In mid-2002, SouthernEra in joint venture with the Black Economic
Empowerment (BEE) company, Mvelaphanda Resources, was granted the rights over
the Dwaalkop Section of the Greater Messina. A feasibility study proposing the
joint development of the Doornvlei and Dwaalkop sections, as Phase 2, is on
track for completion this week and will be released during the third quarter.
A scoping study over the Phase 3 Zebediela Section is also on track for
completion shortly and the results will also be released during the third
quarter.
Mr. Evans added: 'Through our increased control of Messina Platinum,
SouthernEra has secured its position as one of the largest participants in the
global platinum group metals (PGM) mining industry. With the resources
currently under our control at the Greater Messina, SouthernEra has the
potential to increase its production base by more than 300 percent over the
next three years, making us the strongest PGM growth companies.'
SouthernEra Resources is an independent producer of platinum group metals
and diamonds. The company also has an extensive PGM, gold and diamond
exploration program. The common shares are listed on the Toronto Stock
Exchange and the London Stock Exchange's AIM market.
NOTE: Certain statements contained herein are 'forward-looking' and are
based on the opinions and estimates of management, or on the opinions and
estimates provided to and accepted by management. These opinions and estimates
include those that relate to all the geological, development, mining and
commodity price and market parameters used by management. Forward-looking
statements are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ, possibly
significantly. Readers are therefore cautioned not to place undue reliance on
any forward-looking statement.
For further information: SouthernEra Resources Limited: Mr. Patrick
Evans, President and CEO, Telephone: (416) 359-9282, Fax: (416) 359-9141,
E-mail: inbox(at)southernera.com, www.southernera.com
(SRE SUF.)
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