Result of Equity Issue

SouthernEra Closes C$77.12 Million Equity Financing

 

    Shares Issued and Outstanding:  62,116,193

    TSX: SUF

    AIM: SRE

 

    TORONTO, Nov. 17 /CNW/ - The Board of SouthernEra Resources Limited

announced today that the Company has completed its previously announced equity

financing with a syndicate co-led by RBC Capital Markets and BMO Nesbitt Burns

Inc. of 10.00 million units at a price of C$6.40 per unit, each unit

consisting of one common share and one-half of one share purchase warrant. In

addition, the underwriting syndicate exercised an option to purchase an

additional 2.05 million units, resulting in total gross proceeds of C$77.12

million. Each full warrant entitles the holder to acquire, at any time up to 5

years following closing of this offer, one common share from SouthernEra at a

price of C$10.00 per share.

    SouthernEra will use a majority of the proceeds to repay debt, further

develop the Messina Platinum Project and for general corporate purposes.

    The common shares and the warrants have been approved for listing on the

Toronto Stock Exchange and the common shares are the subject of a listing

application to the London Stock Exchange's Alternative Investment Market.

 

    The securities offered have not been registered under the U.S. Securities

Act of 1933, as amended, and may not be offered or sold in the United States

absent registration or applicable exemption from the registration

requirements. This press release shall not constitute an offer to sell or the

solicitation of an offer to buy nor shall there be any sale of the securities

in any State in which such offer, solicitation or sale would be unlawful.

 

    SouthernEra Resources is an independent producer of platinum group metals

(PGMs) and diamonds. The Company also has an extensive PGM, gold and diamond

exploration program. The common shares are listed on the Toronto Stock

Exchange and the London Stock Exchange's AIM.

 

    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISTRIBUTION TO

    USNEWSWIRE SERVICES/

 

   

    For further information: SouthernEra Resources Limited - Patrick C.

Evans, President and CEO; or Dr. Sally Eyre, Vice President Corporate Affairs,

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

inbox(at)southernera.com

    (SUF. SRE)