MESSINA LIMITED
Johannesburg, 6 June 2001: Messina Limited. ("Messina"), 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
the Northern Province. 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.
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, Messina's holding company, 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.
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
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