| Tue 1 Mar 2005, 10:56 | | Deferral agreement |
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Messina - Southern Platinum and subsidiary Messina Platinum conclude deferral
agreement
MESSINA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1950/035912/06)
Share Code: MES
ISIN: ZAE000004438
(`Messina`)
The following is an extract from a news release issued by Southern Platinum
Corp, Messina`s holding company, in Toronto on 28 February 2005.
`February 28, 2005
Shares Issued and Outstanding 85,375,124
TSX: SPC
SOUTHERN PLATINUM AND SUBSIDIARY MESSINA PLATINUM CONCLUDE DEFERRAL AGREEMENT
Toronto, Ontario - Southern Platinum Corp. (TSX: SPC) (the `Company) announced
today that the Company and its 91.5 percent subsidiary, Messina Platinum, have
concluded a deferral agreement with the consortium of lenders` to Messina, known
as the RMB consortium.
In terms of the agreement, the RMB consortium has deferred the principal portion
of the February 2005 payment, which amounts to R44 million (approximately $7.5
million). The R26 million (approx. $4.5 million) interest portion of the
February payment has been met through an inter-company facility between Southern
Platinum and Messina Platinum.
Under the deferral agreement, the RMB consortium has been paid a fee of one
million SPC warrants with an exercise price of C$2.15, which represents the five
day volume weighted average share price to January 31, 2005, when a heads of
agreement was concluded. Upon presentation to Southern Platinum and Messina
Platinum of a proposal to restructure the balance of Messina`s outstanding
project debt, a further fee of one million warrants (with the same exercise
price) shall be payable to the RMB consortium. It is anticipated that such a
proposal shall be received in the near future.
Commenting, Southern Platinum President and CEO, Patrick Evans, said: `The
conclusion of the deferral agreement with the RMB consortium reflects the
strength of their commitment to the Greater Messina Platinum Project. There is
awareness on the part of all parties that the continuing unexpected strength of
the South African Rand is one of the major factors inhibiting Messina`s ability
to service the original facility in what is now a very different exchange rate
environment.`
Southern Platinum is an independent producer, developer and explorer of platinum
group metals. The Company now controls the following platinum assets:
- 91.5 percent of Johannesburg-listed Messina Platinum;
- 50 percent of the Dwaalkop Joint Venture;
- 85 percent of the Millennium Platinum Project in South Africa;
- 100 percent of the Paradise Platinum Project in South Africa; and
- 95 percent of the Monts de Cristal Platinum Project in Gabon.
The common shares are traded on the Toronto Stock Exchange (TSX: SPC).
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FOR FURTHER INFORMATION PLEASE CONTACT:
Southern Platinum Corp.
Mr. Patrick Evans, President and CEO
Telephone: (416) 359-7800
Fax: (416) 359-7801
E-mail: inbox@southplats.com
www.southplats.com
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.`
Rosebank
1 March 2005
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
