SouthernEra May Split Diamond And Platinum Interests

Canadian miner SouthernEra Resources Ltd said it is considering splitting its platinum and diamond interests into two separately listed companies.

SouthernEra's chief diamond asset is the Klipspringer mine in South Africa and on the platinum side owns a 73 percent interest in Messina Ltd, a South African platinum producer.

The firm also has diamond interests in Angola and other parts of Africa, Canada and Australia.

”In order to enhance the value for shareholders of both its platinum and diamond holdings, the board of SouthernEra believes that the unbundling of the company into separately listed platinum and diamond mining companies may be appropriate,” the firm said in a statement.

SouthernEra, which trades on the Toronto and London stock exchanges, said the reorganization would depend on it not having negative tax implications and on financing being available for the diamond company.