12th Oct 2006 07:00
SouthernEra Completes Strategic Review and Hires Financial Advisor Shares issued and outstanding: 160,054,229 TSX: SDM AIM: SRE TORONTO, ON AND LONDON, UK, Oct. 11 /CNW/ - The Board of SouthernEraDiamonds Inc. (TSX: SDM, AIM: SRE) ("the Company") today announced that it hascompleted a comprehensive strategic review of the Company's asset base andbusiness plans with a view to accelerating the Company's transition to onceagain becoming a profitable diamond producer. SouthernEra's key strategic objective is to discover a large high gradeprimary kimberlite that has the potential to support sustainable long-termprofitable production. Within the Company's current wide portfolio, the Boardbelieves that its DRC primary kimberlite projects, particularly its jointventure kimberlite projects with BHP Billiton, offer the best potential toachieve this key strategic objective. In addition, the Board believes that itscurrent portfolio of early-stage 100 percent owned primary explorationprojects in Ontario, Canada, also offer good potential to achieve thisobjective. In support of this strategic objective, the Board believes that it isimperative to secure near-term profitable production to support the Company'scontinuing exploration programs in the DRC and Canada. In the view of theBoard this near-term tactical objective can be best achieved by acceleratingthe Company's extensive DRC alluvial projects. The Board is determined to focus the Company's management, technical andfinancial resources exclusively on achieving the key objective of sustainedprofitable diamond production. In this regard it has retained the services ofRiver Capital Partners Limited to work closely with the Special Committee ofthe Board in support of the Company's new strategic business plan. Commenting, Chairman Chris Jennings said: "SouthernEra Diamonds has its roots as one of Canada's most successfulinternational diamond exploration companies. Over the past fifteen years theCompany has conducted a successful global diamond exploration campaign,discovering more that 100 diamondiferous kimberlites in Canada, South Africa,Democratic Republic of Congo, Australia and Gabon and developing two newdiamond mines from certain of these discoveries. In recent years SouthernEra has been successful in establishing strongexploration bases in a number of regions that offered the potential for majornew diamond discoveries. Based on the results of this wide and diverse programwe are now in a position to focus our continuing exploration efforts on thoseregions that offer the very best potential for major new discoveries. Inparticular, we believe that our DRC primary kimberlite projects offerexceptional potential. The fact that a significant number of these projectsare now being fully funded by BHP Billiton demonstrates their potential andallows us to move forward more quickly in this large prospective area withgreater speed than we could achieve on our own. We are now entering a periodduring which we will be keenly focused on realizing the value of our assetbase for the benefit of shareholders by delivering sustainable profitableproduction." SouthernEra Diamonds Inc. is a Canadian, fully integrated, diamondcompany focused on discovering a large high grade primary kimberlite,providing sustainable long-term profitable production. Some statements contained in this news release are forward-looking and,therefore, involve uncertainties or risks that could cause actual results todiffer materially. Such forward-looking statements include comments regardingexploration work. Actual results could differ materially from thoseanticipated. The Company disclaims any obligation to update forward-lookingstatements.For further information: SouthernEra Diamonds Inc., Alasdair MacPhee,President and CEO, or Sharon Allan, Investor Relations, Telephone: (416)359-9282, Fax: (416) 359-9141, E-mail: inbox(at)southernera.com,www.southernera.com; London: 4C-Burvale, Carina Corbett, Director, Telephone:++44 (0) 207-907-4761, Fax: ++44 (0) 207-907-4769, Email:Corbett(at)4c-burvale.co.uk(SRE) ENDSOUTHERNERA DIAMONDS INCRelated Shares:
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