Statement re: terms of rights issue
23 July 2003 - 2:11AM
UK Regulatory
SouthernEra Subsidiary Messina Platinum Announces Terms of Rights Issue
SouthernEra to Underwrite Rights Issue
Shares Issued and Outstanding: 61,674,459
TSX: SUF
AIM: SRE
TORONTO, July 22 /CNW/ - SouthernEra Resources reported today that its
subsidiary Messina Limited is to raise approximately R311 million (US$41M) by
way of a rights offer of ordinary shares in Messina at a price of R50 per
share. SouthernEra Resources has agreed to underwrite the Messina rights issue
by exercising rights not taken up by minority shareholders.
The proceeds from the exercise of the rights will be used by Messina to
reduce its unsecured debt obligations to SouthernEra, which as of June 30,
2002 totaled R313,740,000 (US$41.5M). SouthernEra advanced these funds to
Messina to finance the construction and development of the recently
commissioned Phase 1 mine, as well as feasibility and pre-feasibility studies
at Phases 2 and 4, respectively.
Commenting on Messina's announcement, SouthernEra President and CEO,
Patrick Evans, said: "By underwriting this rights issue, SouthernEra could
increase its ownership in Messina Limited depending on the level of
participation by minority shareholders. Given the strong growth profile of
Messina, with construction of the next phase set to commence during 2004,
SouthernEra expects to provide further financing to Messina over the next
year. This could result in further Messina rights issues to convert future
shareholder loans to equity."
The rights issue is subject to South African regulatory approval.
SouthernEra Resources Limited is an independent producer of platinum
group metals and diamonds. The Company also has an extensive PGM and diamond
exploration program. The common shares of SouthernEra are traded on the
Toronto Stock Exchange (SUF) and the London Stock Exchange's AIM (SRE).
CONTACT: SouthernEra Resources Limited, Dr. Sally Eyre,
Vice President, Corporate Affairs, Telephone: (416) 359-9282,
Fax: (416) 359-9141, e-mail: inbox(at)southernera.com
(SUF. SRE)
END