De Beers Consolidated Mines Limited (''De Beers'') SouthernEra Resources Limited
(''SouthernEra'') Joint Announcement
Joint venture and marketing agreements signed
TORONTO, Feb. 5 /CNW/ - De Beers and SouthernEra are pleased to announce
that the detailed agreements between the two companies, contemplated in the
heads of agreement signed on 15 June 1998, were today signed at Marsfontein.
The agreements consist of a Marsfontein joint venture agreement and
marketing agreements for both the Marsfontein and the Klipspringer projects.
In terms of the Marsfontein joint venture agreement, De Beers has a 60%
interest and manages the Marsfontein project, although in line with its small
mine philosophy De Beers has outsourced the waste stripping and mining
operations to a contractor. SouthernEra has a 40% share in the Marsfontein
joint venture and is responsible for ore treatment at its plant on the farm
Rusland.
In terms of the marketing agreements, production from the Marsfontein
project and from the SouthernEra Klipspringer project will be sold through the
Central Selling Organisation (CSO). These agreements will strengthen the
stability of the world diamond market, as well as provide SouthernEra with the
benefits of an assured and reliable market for its diamond production.
De Beers and SouthernEra are confident that the signing of these
agreements today will lead to a partnership beneficial to both parties and
possible collaboration in future exploitation ventures.
%SEDAR: 00004535E
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For further information: DE BEERS: TRACEY PETERSON, (011) 374-7388 (W),
082 855 4323; SOUTHERNERA: DR CHRISTOPHER JENNINGS, PRESIDENT; FRANK VAN DE
WATER, CHIEF FIN. OFFICER; NICHOLAS SAYCE, INVESTOR RELATIONS,
TEL: (416) 359-9282, FAX: (416) 359-9141; KIM FREEMAN, CHIEF MINING ENGINEER,
(082 920 5329)
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