| Tue 29 Jun 2004, 15:57 | | SouthernEra to Increase Stake in Messina to 91.5% |
|
SouthernEra Closes Transaction to Increase Stake in Johannesburg-listed Messina
to 91.5 Percent
MESSINA LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1950/035912/06)
Share Code: MES ISIN: ZAE000004438
(`Messina` or `the company`)
The following is an extract of a news release issued by SouthernEra Resources
Limited, the company`s holding company, in Toronto on 28 June 2004.
June 28, 2004
Shares Issued and Outstanding: 85,254,411
TSX: SUF
AIM: SRE
SouthernEra Closes Transaction to Increase Stake in Johannesburg-listed Messina
to 91.5 Percent
Toronto, Ontario - 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. 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 JSE Securities Exchange SA (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, 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
SouthernEra Resources Limited
Mr. Patrick Evans, President and CEO
Telephone: (416) 359-9282
Fax: (416) 359-9141
E-mail: inbox@southernera.com
www.southernera.com
Rosebank
29 June 2004
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited) CORPORATE FINANCE
Date: 29/06/2004 03:45:11 PM Supplied by
Produced by the JSE SENS Department
