3rd Jan 2006 07:00
SouthernEra Diamonds Closes Private Placement Shares issued and outstanding: 128,313,101 TSX: SDM AIM: SRE TORONTO, ON and LONDON, UK, Dec. 30 /CNW/ - SouthernEra Diamonds Inc.("SouthernEra") (TSX: SDM, AIM: SRE) announced today that it has closed thepreviously announced private placement with BHP Billiton ("BHPB"). The Companyhas issued a total of 15,684,000 shares at a price of C$0.60 per share forgross proceeds of US$8 million (approx C$9.4 million) resulting in BHPBbecoming SouthernEra's largest shareholder with an approximate 12% holding. Anapplication has been made to AIM for 15,684,000 common shares to be admittedand it is expected that trading will commence shortly. US$4 million of the US$8 million proceeds from the BHPB private placementwill be used to fund the exploration for primary diamonds and all otherminerals within SouthernEra's exploration permits covering in excess of 13,000square kilometres of ground in the Democratic Republic of the Congo (DRC)under a recently announced Memorandum of Agreement with BHPB (see News Releasedated 19 October 2005). BHPB can earn a 50% or a maximum 65% interest in thejoint venture. Once the US$4 million has been fully utilised, BHPB shall fullyfund exploration up to and including the completion of a pre-feasibility studyand will earn a 50% interest in the project. Full funding of a BankableFeasibility study will grant BHPB an additional 15% interest. SouthernEraretains a 100% right to all alluvial diamonds. The remaining US$4 million willbe used to support SouthernEra's global exploration and development programand for general corporate purposes. SouthernEra Diamonds is one of Canada's largest fully integrated diamondcompanies with extensive advanced diamond exploration in five countriesincluding Canada, Gabon, the DRC, Zimbabwe and South Africa. The Company alsooperates the Klipspringer Diamond Mine in South Africa and maintains an 18percent free-carried interest in the Camafuca Diamond Project in Angola. 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., Chris Reynolds,Senior Vice President and Chief Financial Officer, or Howard Bird, Senior VicePresident, Exploration, 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 (SDM. SRE) ENDSOUTHERNERA DIAMONDS INCRelated Shares:
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