Statement re SouthernEra Closes Private Placement

SouthernEra Diamonds Closes Private Placement Through Haywood Securities
    and Directors Shareholding

 

    Shares Issued and Outstanding: 112,279,101

    TSX: SDM

    AIM: SRE                       

 

    TORONTO, ON, and LONDON, UK, Aug. 25 /CNW/ - SouthernEra Diamonds Inc.

(the "Company") (TSX: SDM, AIM: SRE) announced today that it has closed the

previously announced private placement led by Haywood Securities Inc. for the

sale of 8,782,500 Flow-through Common Shares and 1,430,000 Units for gross

proceeds of approx. C$4.1 million. Of the 10,212,500 shares issued, directors

and officers of the Company subscribed for 1,475,000 Flow-through shares or

Units.

    The four members of the Board of Directors that participated in the

placement and their respective shareholdings are detailed in the following

table:

 
                                                 Number of        Interest
                                 Number of       Common Shares    in Current
                                 Common Shares   Held Following   Shares
    Director                     Purchased       the Placement    Outstanding

    Christopher M.H. Jennings    1,000,000        3,196,501             2.9%

    Patrick C. Evans               100,000          484,400             0.4%

    Thomas C. Dawson               100,000          530,000             0.5%

    Phil S. Martin                 100,000          588,414             0.5%

 

    The Flow-through Common Shares were sold at C$0.40 per Flow-through

Common Share for gross proceeds of approx. C$3.5 million. The Units were sold

at C$0.40 per Unit for gross proceeds of approx. C$0.6 million. Each Unit

consists of one common share and one-half of one common share purchase

warrant. Each whole warrant is exercisable to acquire one common share at an

exercise price of C$0.65 for a period of 24 months from today. Application has

been made for the 10,212,500 Common Shares issued pursuant to the placing of

Flow-through common shares and units to be admitted to trading on AIM.

Dealings in these shares are expected to commence Aug 26, 2005.

    The proceeds of the Flow-through private placement will be used to

support the Company's Canadian exploration program and the Units proceeds will

be used to support the Company's global exploration program and for general

corporate purposes.

    The securities placed have not, nor will they be registered under the

United States Securities Act of 1933, as amended, and may not be offered or

sold within the United States or to, or for the account or benefit of U.S.

persons absent U.S. registration or an applicable exemption from U.S.

registration requirements. This release does not constitute an offer for sale

of securities in the United States.

 

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

companies with extensive diamond exploration in six countries, including

Canada, Gabon, the Democratic Republic of the Congo, South Africa, Zimbabwe

and Australia. This represents one of the most active global diamond

exploration programs. The Company also operates the Klipspringer Diamond Mine

in South Africa which is currently under care and maintenance, 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, CFO and Secretary or

Ms. Sharon Allan, Investor Relations, Telephone: [phone], Fax:

[phone], E-mail: inbox(at)southernera.com, www.southernera.com

    (SDM. SRE)