Acquisition - private placement of shares

SouthernEra Directors Subscribe to Private Placement

 

    Shares Issued and Outstanding: 85,380,418

    TSX: SDM

    AIM: SRE

 

    TORONTO, Jan. 18 /CNW/ - SouthernEra Diamonds Inc. (the "Company") (TSX:

SDM, AIM: SRE) announced today that the directors of the Company propose to

enter into a non-brokered private placement subscription agreement with the

Company.

    It is proposed that the directors will subscribe for 1.25 million common

shares of the Company at a price of C$0.47 per common share. This represents a

premium of approximately 24 percent over the closing price on January 17, 2005

and approximates the 30-day closing price average of the Company's common

shares. No warrants or options will be issued or granted and the placement

common shares will be subject to a mandatory hold period. The proceeds from

this private placement will be used to support the Company's global

exploration program and for general corporate purposes.

    SouthernEra Diamonds is one of Canada's largest fully integrated diamond

companies with extensive diamond exploration in five countries, including

Canada, Australia, Gabon, the Democratic Republic of the Congo and South

Africa. This represents one of the most active global diamond exploration

programs. The Company also operates the Klipspringer Diamond Mine in South

Africa and maintains an 18 percent free-carried interest in the Camafuca

Diamond Project in Angola.

 

        For further information: Please contact: SouthernEra Diamonds Inc.,    

Mr. Chris Reynolds, Senior Vice President and CFO, or Ms. Sharon Allan,

Investor Relations, Telephone: [phone], Fax: [phone], E-mail:

inbox(at)southernera.com; www.southernera.com

    (SDM. SRE)

 

 

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