BHP Billiton to buy chunk of Southernera

TORONTO - BHP Billiton, the world's biggest miner, will take a 12 per cent stake in SouthernEra Diamonds Inc. for US$8 million ($9.86 million), the tiny Toronto-based diamond explorer said on Wednesday.

Shares of SouthernEra, which is looking for diamonds on three continents, jumped 30 per cent, to 48 Canadian cents, when trading resumed after its stock was halted on the Toronto Stock Exchange.

SouthernEra said $4 million will be used for exploring and developing its diamond properties with BHP Billiton in the Democratic Republic of Congo.

SouthernEra will use the remaining $4 million to fund its other diamond explorations in Canada, South Africa, Gabon and Australia, as well as for general corporate purposes.

- REUTERS