Vancouver – CCAA-protected Tahera Diamond, the owner of the closed Jericho diamond mine in Nunavut, says it has signed a letter of intent with an undisclosed entity. Tahera also received an extension of creditor protection until May 29, 2009.
The agreement allows the entity up until around Mar. 31 to conduct due diligence of Tahera and its assets and gives it a guarantee of exclusivity in return for extending to Tahera a $500,000 loan.
Tahera says a completed transaction with the entity would “involve the assignment of the Jericho Mine assets to a newly-incorporated, wholly-owned subsidiary of (Tahera).”
Tahera struggled to make ends meet at its Jericho mine which, after it went into production in 2006, produced disappointing grades and proved logistically difficult.
By the time it went under creditor protection in January 2008 Tahera had fully drawn a $50 million line of credit with Laurelton Diamonds and racked up another $25 million in trade debt.
It continued care and maintenance at Jericho until Dec. 15, 2008, when a court ruled it could cease operations.
Tahera says that upon successful completion of the potential transaction it may be able to address its debts.
Be the first to comment on "Tahera Diamond finds interested party"