SouthernEra closes transaction to increase stake

SouthernEra Closes Transaction to Increase Stake in

    Johannesburg-listed Messina Platinum to 91.5 Percent

 

    Shares Issued and Outstanding: 85,254,411

    TSX: SUF

    AIM: SRE

 

    TORONTO, June 28 /CNW/ - 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 Platinum.

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 Johannesburg Securities Exchange (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 Platinum,

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.

 

    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.

 

    For further information: SouthernEra Resources Limited: Mr. Patrick

Evans, President and CEO, Telephone: [phone], Fax: [phone],

E-mail: inbox(at)southernera.com, www.southernera.com

    (SRE SUF.)