8th Jun 2006 07:00
SouthernEra Initiates Strategic Review Board Restructured Shares Issued and Outstanding: 159,428,601 TSX: SDM AIM: SRE TORONTO and LONDON, June 7 /CNW/ - The Board of SouthernEra Diamonds Inc.(TSX: SDM, AIM: SRE) ("the Company") today announced that a special committeeof the Board has been formed to conduct a comprehensive strategic review ofthe Company's asset base and business plans with a view to accelerating theCompany's transition to becoming a profitable diamond production company. SouthernEra Diamonds has its roots as one of Canada's most successfulinternational diamond exploration companies. Over the past fifteen years theCompany has conducted a highly successful global diamond exploration campaign,discovering more that 80 diamondiferous kimberlites in Canada, South Africa,Australia and Gabon. Through this investment in exploration, the Company was successful infinding, building and operating two diamond mines, both in South Africa. TheMarsfontein Mine - a joint venture with De Beers - generated approximately$250 million in revenue in less than 24 months. The Klipspringer Mine -construction of which was fully funded by De Beers - was commissioned inJanuary 2003 to produce 120,000 carats of diamonds per annum. Following asteep appreciation of the South African rand (Klipspringer's operatingcurrency) against the US dollar, the mine was placed on care and maintenancein January 2004. With a life of more than ten years, it is expected thatKlipspringer will be able to resume production once the rand depreciates. Profits generated from the Marsfontein Mine and subsequent capitalraisings have enabled SouthernEra to develop one of the largest and mostdiversified global diamond exploration programs, managed by a focused and veryaccomplished diamond operating team. This has placed the Company in a strongposition to resume its position as a profitable diamond producer. Confidence in the potential of SouthernEra's asset base has beendemonstrated by the world's leading mining company, BHP Billiton, which isboth the Company's joint venture partner in the extensive DRC primarykimberlite exploration program and also a major shareholder in the Company,having subscribed to a C$9.4 million private placement last December. Thisconfidence was further demonstrated last March when the US fund manager OZManagement LLC subscribed for the majority of a further C$13.4 million privateplacement. OZ Management now controls 14.59 percent of the Company and BHPBilliton controls 9.84 percent. SouthernEra also announced the restructuring of the Company's Board ofDirectors. A reduced slate of four directors has been proposed for election atthe Company's annual general meeting scheduled for June 29, 2006. The Companyis pleased to announce that Mr. Paul Brink, a resident of Toronto, is beingproposed as a new independent director, to join continuing directors Messrs.Jennings, Dawsonand Evans. Mr. Brink is the Chief Financial Officer of NRXGlobal Corp., a Toronto based maintenance information solution provider to thepower, oil and gas and mining industries. Prior to that, he held the followingpositions: Vice President for Investment Banking, BMO Nesbitt Burns inToronto; Assistant Treasurer, Project Finance, Union Bank of Switzerland (NewYork) and Assistant Treasurer, Structured Finance, Union Bank of Switzerland(Zurich). Mr. Brink has a Master of Philosophy in Management Studies from StJohn's College, Oxford University, and a B. Sc. Mechanical Engineering fromthe University of Witwatersrand, South Africa. xxxx SouthernEra Diamonds Inc is one of Canada's largest fully integrateddiamond companies with extensive diamond exploration in five countriesincluding Canada, Gabon, the DRC, Zimbabwe and South Africa. This representsthe fourth 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. For further information: SouthernEra Diamonds Inc., Dr. Chris Jennings,Chairman, 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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