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

To: GEORGES who wrote (5350)	1/12/2000 2:53:00 PM
From: Goalie	Respond to of 7235

SouthernEra Close to Raising Money for Angola Project (Update2) (Updates with final shares in 6th paragraph.) Toronto, Jan. 11 (Bloomberg) -- SouthernEra Resources Ltd. is close to raising money for its Angola diamond deposit in a way that addresses shareholder concern the project is too risky, a company official said. Vice-President Lee Barker said SouthernEra hopes to have the US$25 million to US$35 million financing for its Camafuca site in place on April 1, when it's scheduled to deliver a feasibility study for the project to the Angolan government. ''There are large players and medium-sized players involved in the diamond industry and all could raise the capital needed,'' Barker said. He said at least four investors are interested, declining to elaborate. Toronto-based SouthernEra wants to limit any financial and legal risk related to the project, in which it has already invested US$23 million, Barker said. Shareholders have been leery of the project since a SouthernEra employee was killed in the war- torn African country in May 1998, Barker said. The company owns 65 percent of the project and the Angola government the rest. SouthernEra fell C$0.10 ($0.07), or 5.1 percent, to C$1.85 in Toronto trading. Stock of the company has fallen 79 percent in the past year, partly on investor concern that production at its South African diamond mines is drying up. The stock has fallen 14 percent this month alone. SouthernEra is betting its stake in the Camafuca project could give its stock a boost and replenish its diamond supply. The Angolan concession is set on ''the world's largest underdeveloped diamondiferous kimberlite body that's been discovered to date,'' Barker said. Kimberlite is the most common host rock of diamonds. Angola is the world's third largest producer of diamonds. SouthernEra has two diamond mines operating in South Africa and has projects in Angola, Canada and Brazil. It is purchasing a majority stake in a South African platinum mine. The company's diamond mines in South Africa are currently its sole source of revenue. It expects them to keep producing for at least two more years.

To: GEORGES who wrote (5350)	1/12/2000 3:01:00 PM
From: crudestope	Read Replies (1) \| Respond to of 7235

Bloomberg re Camafuca. Dear Georges, The following was released by Bloomberg yesterday. I believe one of the Camafuca financing parties is a diamond dealer who wants to by-pass the CSO. Regards, Crudestope. Toronto, Jan. 11 (Bloomberg) -- SouthernEra Resources Ltd. is close to raising money for its Angola diamond deposit in a way that addresses shareholder concern the project is too risky, a company official said. Vice-President Lee Barker said SouthernEra hopes to have the US$25 million to US$35 million financing for its Camafuca site in place on April 1, when it's scheduled to deliver a feasibility study for the project to the Angolan government. "There are large players and medium-sized players involved in the diamond industry and all could raise the capital needed", Barker said. He said at least four investors are interested, declining to elaborate. Toronto-based SouthernEra wants to limit any financial and legal risk related to the project, in which it has already invested US$23 million, Barker said. Shareholders have been leery of the project since a SouthernEra employee was killed in the war- torn African country in May 1998, Barker said. The company owns 65 percent of the project and the Angola government the rest. SouthernEra fell C$0.10 ($0.07), or 5.1 percent, to C$1.85 in Toronto trading. Stock of the company has fallen 79 percent in the past year, partly on investor concern that production at its South African diamond mines is drying up. The stock has fallen 14 percent this month alone. SouthernEra is betting its stake in the Camafuca project could give its stock a boost and replenish its diamond supply. The Angolan concession is set on "the world's largest underdeveloped diamondiferous kimberlite body that's been discovered to date", Barker said. Kimberlite is the most common host rock of diamonds. Angola is the world's third largest producer of diamonds. SouthernEra has two diamond mines operating in South Africa and has projects in Angola, Canada and Brazil. It is purchasing a majority stake in a South African platinum mine. The company's diamond mines in South Africa are currently its sole source of revenue. It expects them to keep producing for at least two more years.