Acquisition of additional shares

SouthernEra To Increase Stake in Messina to Over 91%

 

    Shares Issued and Outstanding: 74,707,883

    TSX: SUF

    AIM: SRE

 

    TORONTO, May 17 /CNW/ - SouthernEra Resources Limited announced today

that it has entered into an agreement with a consortium of Messina Limited

shareholders to acquire 3,700,536 Messina shares representing 18.4% of

Messina's issued and outstanding shares. On closing of this transaction, which

is subject to regulatory approval, SouthernEra will own approximately 91.5% of

Messina Limited.

    To acquire these shares, SouthernEra will issue 10,546,528 of its own

common shares, representing 12.4% of SouthernEra's issued and outstanding

shares. The shares to be issued by SouthernEra will be subject to a one-year

hold period.

    SouthernEra President and CEO Patrick Evans said that the transaction is

accretive to SouthernEra. 'For the past several years, we have been pursuing

different strategies to increase our ownership in Messina. The equity dilution

resulting from this transaction will be more than offset by the increase in

ownership of Messina. We are very pleased this agreement has now been

finalised and we welcome the Messina consortium as new shareholders of

SouthernEra.'

    Messina Limited is listed on the Johannesburg Securities Exchange.

Messina Limited has 100% control of three platinum lease areas (Voorspoed,

Doornvlei and Zebediela) at the Greater Messina Platinum Project. The Greater

Messina Platinum Project contains 5.347 million ounces of 5 PGMs plus gold in

the measured category (26.3 million tonnes at 5.347 grams per tonne), 10.810

million ounces in the indicated category (66.55 million tonnes at 5.05 grams

per tonne) and 5.639 million ounces in the inferred category (32.53 million

tonnes at 5.39 grams per tonne).

    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.

 

    For further information: PLEASE CONTACT: SouthernEra Resources Limited,

Mr. Patrick Evans, President and CEO, Telephone: [phone], Fax:

[phone], E-mail: inbox(at)southernera.com; www.southernera.com

    (SUF.)