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Gold/Mining/Energy : Canabrava Diamond -- Ignore unavailable to you. Want to Upgrade?

To: Ross Dickie who wrote (1103)	4/14/1999 8:35:00 PM
From: Ross Dickie	Respond to of 2402

NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS FOR: CANABRAVA DIAMOND CORPORATION VSE SYMBOL: CNB AND SOUTHWESTERN GOLD CORPORATION TSE SYMBOL: SWG APRIL 14, 1999 Canabrava Diamond Corporation & Southwestern Gold Corporation Announce Private Placement of Units VANCOUVER, BRITISH COLUMBIA--Canabrava Diamond Corporation (CNB-V) is pleased to announce that it has agreed to sell on a private placement basis, an aggregate of 3,000,000 units in the capital stock of the Company at a price of $0.80 per unit, for gross proceeds of $2,400,000. Each unit shall consist of one common share and one-half of a non-transferrable share purchase warrant. Each whole warrant will entitle the holder thereof to purchase an additional one common share in the capital stock of the Company at any time over a two year period at a price of $1.40 per share. Southwestern Gold Corporation (SWG-T) ("Southwestern Gold") will be the private placee and purchase the 3,000,000 units from the Company. Southwestern Gold currently owns 59.7 percent of the outstanding shares of the Company. In a separate transaction, Southwestern Gold intends to sell through the facilities of the Vancouver Stock Exchange 3,000,000 free trading shares of the Company so that its net shareholdings in the Company will effectively remain unaltered at 19,980,550 shares. The Company intends to use the net proceeds from the private placement for the purposes of project generation and early stage exploration activities, advanced exploration activities on its wholly owned Brazilian properties and unallocated working capital. Canabrava Diamond Corporation is actively exploring for diamonds in Brazil and Canada in partnership with SouthernEra and Kennecott as well as seeking other opportunities worldwide. Southwestern Gold Corporation presently has over 20 joint ventures with companies including Newmont, Pan American Silver, Cominco, Teck Corporation, Paramount Ventures, Southern Peru Copper, Minorco, Cambior and Cedimin. Rory O. Moore, President Canabrava Diamond Corporation John G. Paterson, President Southwestern Gold Corporation -30- FOR FURTHER INFORMATION PLEASE CONTACT: Canabrava Diamond Corporation George H. Plewes Chairman (604) 669-2525 (604) 688-5175 (FAX) Web site: swgold.com or Canabrava Diamond Corporation Rory O. Moore President (604) 669-2525 (604) 688-5175 (FAX) or Southwestern Gold Corporation John G. Paterson President (604) 669-2525 (604) 688-5175 (FAX) Web site: swgold.com The Vancouver and Toronto Stock Exchanges have not reviewed and do not accept responsibility for the adequacy or accuracy of this release. INDUSTRY: MNG SUBJECT: NWS