RAPAPORT... Canada-based SouthernEra Diamonds was offered a stock-swap take over by Mwana Africa PLC on March 16, 2007.

SouthernEra holds alluvial and kimberlite diamond exploration projects in the Democratic Republic of the Congo, an 18 percent carried interest in the Camafuca mine in Angola, and a 57 percent interest in the Klipspringer diamond mine in South Africa.

According to Mwana Africa, JP Morgan and OZ Management have agreed to tender an aggregate 12.56 percent of the outstanding SouthernEra common shares.

"Mwana's strategy is to develop into a major resource group on the African continent, exploiting opportunities across different countries and commodities, and focusing on being one of the most efficient and low cost producers in Africa," said Oliver Baring - chairman of Mwana Africa.

"The strategy includes partnering with industry majors on new projects and also being a preferred vehicle for African investors and entrepreneurs. The proposal to merge Mwana and SouthernEra will allow the management of Mwana to apply its skills to the projects owned by SouthernEra in the DRC and Angola," Baring said.

Mwana Africa holds exploration assets in a range of commodities in the Democratic Republic of the Congo, Ghana, and in Zimbabwe, as well as production assets. In May 2006, Mwana Africa acquired 20 percent of Société Miniere de Bakwanga (‘MIBA’) the Democratic Republic of the Congo's leading diamond producer based in Mbuji Mayi.

In November 2006 Mwana proposed merger with Gravity Diamonds Limited of Australia. Gravity Diamonds announced March 16, it would convene on April 26, 2007 to consider and vote on the bid. Gravity's board unanimously supports the proposed transaction.

"We look forward to SouthernEra's shareholders participating in the combined group. We believe that Mwana's management has the drive, commitment and experience to ensure that SouthernEra's various opportunities, in particular the Badibanga and Tshikapa projects in the Kasai region and Camafuca project in Angola, are developed in an economical and expeditious manner. The diamond concessions of MIBA, Gravity and SouthernEra are contiguous in the DRC. We believe that, developed together, they would form a solid foundation for a major African diamond exploration and production business. This would be to the benefit of both groups' shareholders," Baring said.