/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
Shares issued and outstanding: 173,316,179
TORONTO, June 5 /CNW/ - SouthernEra Diamonds Inc. ("SouthernEra" or "the
Company") (TSX: SDM) today announced that it continues to monitor
announcements from Mwana Africa Plc ("Mwana") (AIM: MWA-L) regarding their
intention to make an offer (the "Mwana Proposal") to acquire all of the shares
of SouthernEra in exchange for shares of Mwana. The board of SouthernEra notes
that Mwana announced on June 1, 2007 that it has engaged advisors and is
continuing its work towards mailing offering materials in relation to the
Mwana Proposal. The board of SouthernEra continues to explore strategic
alternatives open to the Company.
SouthernEra continues to advance its key potential near-term diamond
producing and mid-term exploration diamond projects on schedule within the
Democratic Republic of Congo ("DRC"), Botswana and Canada.
Within the diamond rich Kasai provinces in the DRC, the Company has
secured multi commodity exploration permits covering an area in excess of
- Included in the 16,000 km(2) are six kimberlite joint ventured project
areas covering 13,000 km(2) that the Company has focused its efforts
on in 2006 and 2007. All exploration costs to bankable feasibility
studies are covered by the Company's partner. The Company has flown an
83,000 line kilometer airborne survey over the entire 13,000 km(2) and
its study has already defined in excess of 150 targets for ground
geophysical follow up. Drilling of geophysical targets has now
commenced on the Lusambo project area, one of the six project areas
being explored. In addition, a first phase stream sampling program has
been completed over all six project areas and has returned positive
kimberlitic indicator mineral results which are currently being
- Within the 74% owned Kabinda North Project covering 2,700 km(2),
reconnaissance stream sampling recently returned probe confirmed
kimberlitic indicator mineral results indicating the potential of
kimberlite pipe sources in the area.
- The Company has recently secured a 74% interest in the Vikkas Project
covering 300 km(2) within 4 permits. Two of the permits also have
high-interest alluvial targets.
Within the Company's two main alluvial diamond projects Badibanga (100%)
and Tshikapa (70%):
- At Badibanga, SouthernEra has now recovered over 2,000 carats from two
bulk sample pits and the diamonds are currently being prepared for
export for valuation purposes. The first pit returned a significant
diamond grade of 2 carats per cubic meter (reported in News Release
dated March 6th, 2007) and results of the second pit will be reported
when the sample has been completely processed.
- At Tshikapa, 6 and 8-inch diameter Banka drilling is being conducted
on the Mukeba and Terra-Z Tshikapa permits. These programs are
returning positive results with the recovery of diamonds and will be
reported when complete results covering a larger area are available
Within Botswana and Canada:
- BK 16 Project: Percussion drilling on the diamond-bearing BK16
kimberlite pipe, located within the Orapa kimberlite cluster in
Botswana is continuing. Eight drill holes have been completed to date.
Results will be reported following their interpretation, including
petrographic analysis and classification of the drill chip material.
SouthernEra has a 55% interest in BK16 and has the right to earn up to
70% in the project.
- Trillion Project: In Canada SouthernEra's ongoing program on the 100%
Trillion Project in northwestern Ontario has so far defined 23 drill
ready, kimberlite potential, magnetic targets. The Company anticipates
drill testing 10 to 15 targets in 2007.
Mr. Uwe Naeher, Professional Geologist and SouthernEra's Western
Exploration Manager, is the qualified person, under NI 43-101, responsible for
the technical information in this release. Mr. Naeher has reviewed the
contents of this release.
SouthernEra Diamonds is one of Canada's fully integrated diamond
companies with extensive alluvial and kimberlite diamond exploration in the
DRC as well as other countries including Botswana, South Africa and Canada.
The Company also holds the Klipspringer Diamond Mine in South Africa and
maintains an 18 percent free-carried interest in the Camafuca Diamond Project
For further information:
For further information: SouthernEra Diamonds Inc., Mr. Alasdair
MacPhee, CEO, or Mr. Howard Bird, SVP Global Exploration, Telephone: (416)
359-9282, Fax: (416) 359-9141, E-mail: firstname.lastname@example.org,
www.southernera.com; London: 4C-Burvale, Carina Corbett, Director, Telephone:
+44 (0) 20 7559 6710, Fax: +44 (0) 20 7559 6501, Email: