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

To: VAUGHN who wrote (842)	4/16/1998 11:26:00 AM
From: Goalie	Read Replies (2) \| Respond to of 7235

Hello Vaughn: In case some were unable to dial into the confc call... here's a summary: CJ outlined the situation -- this development with DeBeeres leaves SUF no better or worse in its legal position for the mineral rights than before. CJ re-emphasized SUF's positrion as a major diamond player not only in SA but elsewhere (see NWT, etc). In the overall scheme things, M1 is not the be all and end all! So what has he done? He has spoken to Nick Oppenheimer about possibilities of the NGS, DeB and SUF sitting down for a possible deal, but NGS (heirs" co.) declined; How does this DeB situation is affecting SUF/RG legal case? It doesn't change the legal position at all. DeB has not taken posession of the title to the rights, and do not appear to be too keen to enter into this legal fray...until after the last hearing (could be by May 18)... the date is May 23. Randgold was also flabbergasted at the turn of events and the way this was pulled off. CJ says SUF/RG is still contesting the case before the courts and with the Minister of Mines and Energy. He re-emphasized that "we're no better or worse off" than before. Dept. of Mines has been very helpful in this and is also horrified; dept recognizes the urgency of this case, and they are keen to see progress to resolve this; the Minister recognizes the need to act quickly for the future development and interest of S.A. M1 is not the be all of SUF! CJ says financial institutions are supporting an interim financing for SUF, if and when needed; SUF has Camafuca a giant dimondiferous pipe in Angola, Klipspringer is a tremendous discovery with a psbl life of 50 years; SUF keeps stumbling over new fissures; SUF now has 22,000 carats for sale, the '106-c stone fetched $400,000US; processing now 2000 tons a day, etc. In other words, SUF is well positioned in many areas. "We are a very well diversified dimond mining company in the world...we have a great company and we have great people...Hold on and no need to panic... " CJ was asked about the mineral rights registration process. (I wont go thru it...see explanations elsewhere on this thread). Some comments -- some key protocols (documents) mysteriously went missing... the new company (heirs) was registered in about 6 days which is extremely unusually short time frame; SUF is also investigating some irregularities on how this was done... these rights were registered thru deeds registry and not thru the Dept of Min... there are many conflicts between some old guards and some new very bright young black lawyers... CJ was asked how much DeB paid the heirs. He says he is only guessing but no money has been paid as yet (he doesn't know the amount)... those who want to fill their pockets and buy Porsches will have to wait a while. DeB will have to do DD first, will have to re-drill to satisfy the worth of the find, and they'll wait until after the intradict case is over by May 23 before registeruing the rights under the exploration contract with NGS. He also questioned the way the "negotiations" were handled by the heirs. There was no legal bidding process or tendering process despite reports in the press recently!. In fact SUF was not allowed to make a bid. DeB knew about the rights situation....CJ asked DeB lawyer in January for advice on the rights issue. The lawyer responded to CJ that he couldn't do that because of "conflict of interest" which was a giveaway that DeB was involved. Someone had to finance this group (of heirs)... It seems DeB may want to negotiate a marketing deal, but CJ said he was never against DeB marketing SUF diamonds. SUF is in the best position for a legal tender position but was not allowed to bid publicly... its very unfair to say that there was tendering.... Rio Tinto is staying out of this. This is now a political pressure on SA if it goes badly for SUF. Theres absolute outrage at the way things have gone thus far. Without M1, asset value of company should be at $10 to $12 at present, he says. Thats it folks...please forgive grammar and spelling....