Tahera funds work at Jericho (August 16, 1999)

Through a private placement, Tahera (TAH-T) intends to raise $3.5 million, a portion of which will be used to explore the Jericho diamond properties in the new Canadian territory of Nunavut.

The private placement will consist of special notes exchangeable for secured convertible debentures. The debentures will have a 5-year term and an 8% coupon with interest payable semi-annually.

Tahera can satisfy its obligation to pay the interest by issuing common shares. About $3 million worth of the debentures will be convertible, at the option of the holder, into shares on the basis of 8,000 shares per $1,000 convertible debentures.

The conversion price for the remaining debentures is subject to regulatory approval. However, Tahera says the conversion price will not exceed the previously listed price. The debentures will not be redeemable before July 31, 2000. Thereafter, the company may redeem the debentures at its option, depending on the trading price of Tahera’s shares.

Dundee Securities, the financing agent, will receive a placement fee of $150,000 and 750,000 broker warrants exercisable for two years at 19 cents per share.

The Jericho properties lie 420 km northeast of Yellowknife, N.W.T., and 170 km northeast of the Ekati diamond mine.