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