14th Jul 2005 13:11
SouthernEra Diamonds Announces C$5 million Brokered Private Placement Shares Issued and Outstanding: 102,066,601 TSX: SDM AIM: SRE /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./ TORONTO, and LONDON, July 14 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM;AIM: SRE) today announced the entering into of a brokered private placementagreement with Haywood Securities Inc. for the sale of 6,800,000 Flow-throughCommon Shares and 5,000,000 Units for gross proceeds of approx. C$5 million. The Flow-through Common Shares will be placed at C$0.44 per Flow-throughCommon Share for gross proceeds of approx. C$3 million. The Units will beplaced at C$0.40 per Unit for gross proceeds of C$2 million. Each Unit willconsist of one common share and one-half of one common share purchase warrant.Each whole warrant shall be exercisable to acquire one common share at anexercise price of C$0.65 for a period of 24 months from the closing date,which is expected to be July 28, 2005. SouthernEra has granted HaywoodSecurities an option, exercisable prior to the closing, to increase the sizeof the offering by up to approx. C$2 million through the placement ofadditional Flow-through Common Shares and/or Units (or any combinationthereof) under the same terms and conditions. The proceeds from the placement of the Flow-through Common Shares will beused to advance SouthernEra's Canadian diamond exploration projects. Theproceeds from the placement of the Units will be used to advance SouthernEra'sinternational diamond exploration and development projects and for generalcorporate purposes. The Placement is subject to regulatory acceptance. SouthernEra Diamonds is Canada's largest fully integrated diamond companywith extensive diamond exploration in six countries including Canada,Australia, Gabon, the DRC, Zimbabwe and South Africa. This represents thefourth most active global diamond exploration program after the majorsDeBeers, BHPB and Rio Tinto. The Company also operates the KlipspringerDiamond Mine in South Africa and maintains an 18 percent free-carried interestin the Camafuca Diamond Project in Angola. The securities offered have not been registered under the U.S. SecuritiesAct of 1933, as amended, and may not be offered or sold in the United Statesabsent registration or any applicable exemption from the registrationrequirements. This press release does not constitute an offer to sell or thesolicitation of an offer to buy nor will there be any sale of the securitiesin any state in which such offer, solicitation or sale would be unlawful. This press release includes forward-looking statements. All statementsother than statements of historical fact included in this press release, andall statements regarding plans, objectives and expected performance, areforward-looking statements. These forward-looking statements have been basedon current expectations and projections about future events, includingnumerous assumptions. Forward-looking statements generally can be identifiedby the use of forward-looking terminology such as "ambition", "may", "will","expect", "intend", "estimate", "anticipate", "believe", "plan", "seek" or"continue" or negative forms or variations of similar terminology. Suchforward-looking statements involve known and unknown risks, uncertainties,assumptions and other factors related to SouthernEra Diamonds Inc. Forward-looking statements involve risks, uncertainties and assumptions.Actual results may differ materially from those expressed in forward-lookingstatements. Given these risks, uncertainties and assumptions, you arecautioned not to put undue reliance on any forward-looking statements. Inaddition, the inclusion of such forward-looking statements should under nocircumstances be regarded as a representation by SouthernEra Diamonds Inc.that it will achieve any results set out in such statements or that theunderlying assumptions used will in fact be the case. For further information: Canada: SouthernEra Diamonds Inc., Mr. PatrickEvans, President and CEO, or Mr. Chris Reynolds, SVP and CFO, Telephone: (416) 359-9282, Fax: (416) 359-9141, E-mail: inbox(at)southernera.com, www.southernera.com; UK and Europe: Ms. Carina Corbett or Mr. JohnCarrick-Smith - 4C-Burvale Limited, Telephone: ++44(0)207-907-4761, Fax:++44(0)207-907-4769, E-mail: corbett(at)4c-burvale.co.uk; South Africa:SouthernEra Diamonds Inc., Mr. Peter Ibbotson, Vice President, Marketing, Telephone: ++27-11-442-6923, Fax: ++27-11-442-6993, E-Mail:sufjhb(at)icon.co.za (SDM. SRE) ENDSOUTHERNERA DIAMONDS INCRelated Shares:
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