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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: gemsearcher who wrote (3814)	6/28/1999 9:28:00 AM
From: PHILLIP FLOTOW	Read Replies (2) \| Respond to of 7235

Here it is: SouthernEra Resources Limited; Canabrava Diamond Corporation - formal agreement signed on Canabrava Project, Brazil TORONTO, June 28 /CNW/ - SouthernEra Resources Limited (SUF-TSE) and Canabrava Diamond Corporation (CNB-V) are pleased to announce the signing of a formal Option/Joint Venture Agreement to explore for and develop the Canabrava Project diamond properties in Brazil. This agreement supersedes the Letter Agreement signed on April 5, 1999. The Canabrava Project is located 400 kilometres southeast of Brasilia and comprises approximately 480,000 hectares of exploration concessions. Under the terms of the Agreement, SouthernEra can earn a 50% interest in the Project by spending a total of US$ 20 million over seven years, with a firm commitment of US$ 1.5 million in the first two years. The agreement provides SouthernEra with a number of options including (a) a facility to reduce its initial earn in commitment, (b) the right to explore and develop the alluvial resources on the Project, and (c) the ability to ultimately increases its interest in specific properties to 70% (see News Release dated April 6, 1999 for details). Exploration work on the Project commenced in late May with a focus on following up a number of high interest pipes and priority areas as well as assessing the alluvial potential of a number of rivers known to host large and fancy coloured diamonds. Work has also commenced on upgrading the laboratory facility in Patoas de Minas. The program will be expanded over the next few months with the addition of key personnel to the exploration team. %SEDAR: 00004535E -30- For further information: Christopher M.H. Jennings, President, A. Lee Barker, Senior Vice President, Frank van de Water, Vice President, Finance, Howard Bird, Senior Geologist, Nicholas Sayce, Investor Relations, Phone: (416) 359-9282, Fax: (416) 359-9141, e-mail: inbox@southernera.com, southernera.com PHIL