SouthernEra to raise $14.5m

Toronto-based SouthernEra Resources (TSE) has arranged a private placement of $14.5 million to finance evaluation of the SUF-1 diamond project in South Africa.

Under the placement, which is subject to right of first refusal by Kennecott Canada, SouthernEra will issue 2 million units at $7.25 each. Each unit will consist of one share and half of a warrant to buy shares at $8.

If the results of a bulk sampling program at SUF-1 are encouraging, Southern Era says it will use some of the proceeds of the placement to cover the costs of bringing the property into production.

The company recently applied for a permit to mine the main fissure at SUF-1 (T.N.M., Feb. 19/96), where a 86.6-tonne sample returned 364 carats last year.