26th Aug 2005 06:00
SouthernEra Diamonds Closes Private Placement Through Haywood Securities and Directors Shareholding Shares Issued and Outstanding: 112,279,101 TSX: SDM AIM: SRE TORONTO, ON, and LONDON, UK, Aug. 25 /CNW/ - SouthernEra Diamonds Inc.(the "Company") (TSX: SDM, AIM: SRE) announced today that it has closed thepreviously announced private placement led by Haywood Securities Inc. for thesale of 8,782,500 Flow-through Common Shares and 1,430,000 Units for grossproceeds of approx. C$4.1 million. Of the 10,212,500 shares issued, directorsand officers of the Company subscribed for 1,475,000 Flow-through shares orUnits. The four members of the Board of Directors that participated in theplacement and their respective shareholdings are detailed in the followingtable: Number of Interest Number of Common Shares in Current Common Shares Held Following Shares Director Purchased the Placement Outstanding Christopher M.H. Jennings 1,000,000 3,196,501 2.9% Patrick C. Evans 100,000 484,400 0.4% Thomas C. Dawson 100,000 530,000 0.5% Phil S. Martin 100,000 588,414 0.5% The Flow-through Common Shares were sold at C$0.40 per Flow-throughCommon Share for gross proceeds of approx. C$3.5 million. The Units were soldat C$0.40 per Unit for gross proceeds of approx. C$0.6 million. Each Unitconsists of one common share and one-half of one common share purchasewarrant. Each whole warrant is exercisable to acquire one common share at anexercise price of C$0.65 for a period of 24 months from today. Application hasbeen made for the 10,212,500 Common Shares issued pursuant to the placing ofFlow-through common shares and units to be admitted to trading on AIM.Dealings in these shares are expected to commence Aug 26, 2005. The proceeds of the Flow-through private placement will be used tosupport the Company's Canadian exploration program and the Units proceeds willbe used to support the Company's global exploration program and for generalcorporate purposes. The securities placed have not, nor will they be registered under theUnited States Securities Act of 1933, as amended, and may not be offered orsold within the United States or to, or for the account or benefit of U.S.persons absent U.S. registration or an applicable exemption from U.S.registration requirements. This release does not constitute an offer for saleof securities in the United States. SouthernEra Diamonds is one of Canada's largest fully integrated diamondcompanies with extensive diamond exploration in six countries, includingCanada, Gabon, the Democratic Republic of the Congo, South Africa, Zimbabweand Australia. This represents one of the most active global diamondexploration programs. The Company also operates the Klipspringer Diamond Minein South Africa which is currently under care and maintenance, and maintainsan 18 percent free-carried interest in the Camafuca Diamond Project in Angola. For further information: PLEASE CONTACT: SouthernEra Diamonds Inc.,Mr. Chris Reynolds, Senior Vice President, CFO and Secretary orMs. Sharon Allan, Investor Relations, Telephone: (416) 359-9282, Fax:(416) 359-9141, E-mail: inbox(at)southernera.com, www.southernera.com (SDM. SRE)ENDSOUTHERNERA DIAMONDS INCRelated Shares:
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