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

To: Valuepro who wrote (2082)	10/11/1998 8:51:00 PM
From: RBMac	Read Replies (1) \| Respond to of 7235

Thanks to all for the insights. There was an article on it in the Financial Post (oct 10, p. 3) on the talks and the lawsuit. That share ratio would suck, at least on the face of it.

To: Valuepro who wrote (2082)	10/13/1998 2:24:00 PM
From: VAUGHN	Read Replies (1) \| Respond to of 7235

Hello Valuepro From today's CC Morning Coffee. * SouthernEra Resources (SUF : TSE : $7.35 : Issued 30.4M f.d.) / New Indigo Resources (NDR : ASE : $0.85 : Issued 14.9M) On Friday, SouthernEra and New Indigo announced that discussions of an amalgamation of the two companies were underway. SouthernEra's fully-diluted market capitalization is approximately $225M, and New Indigo's is approximately $12.7M. New Indigo's assets (held through Snowpipe Resources Inc.) include a 50% interest in approximately 2.4M acres in the NWT (50% Lytton Minerals) with the principal property being the Jericho Project. There are three diamond-bearing kimberlite pipes known as the Jericho 1-3 pipes: Jericho 1 and 3 contain an estimated 17M tonnes averaging 0.7-1.0 carat/tonne. The Jericho pipes are located 28 km north of the Lupin gold mine. Recently, a new discovery was announced known as the Contwoyto-1, with initial results pending. In northern Alberta, New Indigo and Lytton can earn up to a 75% interest in claims belonging to Birch Mountain Minerals. The two companies have joint-ventured the Rockinghorse and Hood River projects (NDR 25%) out to Kennecott Canada, an RTZ Limited subsidiary. H.A. Simons has completed a scoping study suggesting a 2,400-3,600 tonne per day operation which could produce over 700,000 carats annually for the Jericho Project, which is clearly New Indigo's principal asset. Further exploration is planned; however funding has been exacerbated by poor markets, a reversal of management of Lytton, and litigation initiated in late June against Lytton, New Indigo, Glenmore Highlands, Klondike Gold, Finngold Resources and various individuals, by First Island Trustees as the trustees of The Fern Trust and Howard B. Miller. Mr. Miller is a London-based lawyer and deputy chairman of Nelson Gold Corp. We would refer you to a lengthy article in the Sept. 8/98 Globe and Mail for some of the background. We would not like to see SouthernEra inherit this litigation (one battle a year is enough), and could only hope that New Indigo could extricate itself from being included as a defendant. We do like the potential of the Jericho Project, and had been optimistic that with the (former) new management at Lytton and then-planned merger with New Indigo (aborted at the end of June), that the project would move ahead in a refreshing manner. At the end of March, New Indigo had about 3.6M in cash and short-term deposits, and some $49.1M in exploration and development costs booked. David James (204) 988-9602 ******* Regards P.S. Thanks Frank