AFRICA SPECIAL — SouthernEra funds fissure project

A financing agreement is expected to provide SouthernEra Resources (SUF-T) with funds to develop the Klipspringer diamond project in South Africa.

Proceeds of between $7.7 million and $15.5 million will be applied to the diamondiferous kimberlite fissure project, where bulk sampling and test mining are under way.

At last report, more than 3,500 carats of diamonds worth $300,000 had been recovered from the Main Fissure structure.

Last year, SouthernEra discovered an enlargement (called a “blow”) on the fissure vein system. Test-pitting of this target, known as the Sugarbird fissure, also yielded diamonds. More work is planned, including a 100-tonne bulk sample.

A portion of the proceeds will be used to define reserves and develop alluvial diamond properties in northeastern Angola.

The company is providing technical expertise and financing to explore and develop the concession areas in Angola. In return, it will receive 35% of net profits on diamond sales from production on areas it operates, and 10% of net profits from production operated by its partner.