SouthernEra to Underwrite Messina Platinum Rights Issue
Shares Issued and Outstanding: 51,580,800
TSX: SUF
AIM: SRE
TORONTO, Aug. 21 /CNW/ - SouthernEra Resources Limited announced today
that it has agreed to underwrite a rights issue by its 70.4% owned subsidiary
Messina Limited, listed on the Johannesburg Stock Exchange.
The Messina rights offering will consist of 20 rights for every 100
shares currently in issue. Each right enables the purchase of one common share
of Messina Limited at a price of R60. A total of 2,592,979 rights will be
issued to the shareholders of record of the 12,964,895 Messina shares
currently issued and outstanding for total proceeds of R155,578,740. The
rights issue is subject to South African regulatory approval.
The proceeds from the exercise of the rights will be used by Messina to
reduce its unsecured debt obligations to SouthernEra Resources, which as of
June 30, 2002 totaled R155,970,280 (US$15m). SouthernEra advanced these funds
to Messina to finance the construction of the Messina platinum project in
South Africa. By underwriting this rights issue, SouthernEra could increase
its ownership in Messina to as much as 75.3%. SouthernEra expects to provide
further financing to Messina over the next year, which could result in further
Messina rights issues to convert these additional shareholder loans to equity.
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).
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For further information: SouthernEra Resources Limited, Patrick C.
Evans, President and CEO, Telephone: (416) 359-9282, Fax: (416) 359-9141,
e-mail: inbox@southernera.com |
