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

To: Ron S. who wrote (1690)	6/27/1998 10:16:00 AM
From: Ron S.	Read Replies (1) \| Respond to 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.

To: Ron S. who wrote (1690)	6/27/1998 12:24:00 PM
From: Peter Bourgeois	Read Replies (2) \| Respond to of 7235

Hi Ron! I am trying not to be negative and please do not be offended but I am not as enthusiastic as you are with this new DeBeers/SUF relationship. I have accepted the fact that we had to go into partnership with DeBeers over M1 and the fact that we will sell the Klipspringer diamonds through them. This new relationship will only work as long as DeBeers gets its own way. How long will it be before DeBeers starts to stick its nose into Angola and the NWT. As we have seen DeBeers can exert a lot of pressure and they are not the most ethical of companies. We got a bloody nose out of this and a lesson learned (or not). I think that CJ better keep the Devil at arms length since he is already nibbling at our toes. My two cents. Cheers !!! Peter