An agreement between
Messina scrapped the proposed sale after South African-based International Collective Ventures failed to pay the required US$2.5-million purchase price by Jan. 8. As a result, Messina can no longer draw down on a related bridge loan facility, and must repay the outstanding US$130,000, plus a US$2 million loan, on Jan. 15.
The sale would have allowed Messina to continue operations at its namesake mine, also in South Africa, and partially fund other non-producing projects — among them, the Liqhobong open pit in Lesotho, development of which requires about US$52 million (T.N.M., Dec. 21/98).
Messina says it is pursuing alternative financing arrangements to repay its loans and provide working capital. The company notes that unless such funds are raised, all activities in southern Africa may cease.
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