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Gold/Mining/Energy : SOUTHERNERA (t.SUF)
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To: Ron S. who wrote (1690)6/27/1998 10:16:00 AM
From: Ron S.  Read Replies (1) of 7235
 
SouthernEra to buy out Randgold's Marsfontein rights
By Peter Kuitenbrouwer
Saturday, June 27, 1998

The Financial Post

ÿSouthernEra Resources Ltd. will pay $16 million to buy out the rights
to the Marsfontein diamond find in South Africa from joint venture
partner Randgold & Exploration Co. ÿThe deal will close Sept. 30, the
company revealed in a material change report filed with the Ontario
Securities Commission this week. ÿAdding those rights will give it a 40% interest in a joint venture with De Beers Consolidated Mines Inc. to develop the cache. De Beers will own the other 60% of the mineral rights on the entire Marsfontein farm.

ÿUnder the terms of the June 15 deal with De Beers, SouthernEra also
agreed to sell all output from Klipspringer, the sprawling diamond
mining project it owns outright in the Northern Province, through De
Beers' Central Selling Organization. Marsfontein is on the Klipspringer property.

ÿSouthernEra will sell those diamonds to De Beers at 10% below the
standard selling value and pay a sorting fee of not more than 0.5%. This is better than the standard De Beers deal under which independent
producers receive 25% less. ÿ"Plus we get a guaranteed buyer,"
SouthernEra president Chris Jennings said Friday. ÿIn exchange,
"SouthernEra will contribute its existing processing plant to the ...
joint venture."

ÿThe filing also says if De Beers has not begun mining Marsfontein
within 120 days of the issuing of a mining permit, SouthernEra can buy
its share of the rights for $21 million.

ÿJennings expects to get the mining licence for Marsfontein next week.
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