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Tahera Announces $3.5 Million Financing |
07/23/1999 |
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Download this Press Release
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Tahera Corporation ("Tahera") announces that it has entered into an agreement with Dundee Securities Corporation ("Dundee"), as Agent, for a private placement of special notes exchangeable for secured convertible debentures for an amount of approximately $3.5 million. It is expected that the financing, which is subject to regulatory approval, will close on or about July 30, 1999.
Tahera intends to use the proceeds of this financing for the continued exploration of its wholly owned Jericho Properties, to conduct the feasibility study on the Jericho Diamond Project, to complete the mini-bulk sample of the Contwoyto - 1 kimberlite pipe and for general working capital purposes.
The convertible debentures will have a 5 year term and an 8% coupon with interest payable semi- annually. Tahera may elect to satisfy its obligation to pay the interest portion of the convertible debentures through the issuance of common shares. $3 million of the convertible debentures will be convertible into common shares on the basis of 8000 common shares per $1000 convertible debentures at the option of the holder. The conversion price for the remaining convertible debentures is subject to regulatory approval but will be not more than 8000 common shares per $1000 convertible debentures. The convertible debentures will not be redeemable before July 31, 2000. Thereafter, the Company may redeem the convertible debentures at its option depending on the then trading price of the Tahera common shares.
Dundee Securities will receive a placement fee of $150,000 and 750,000 broker warrants exercisable for 2 years at $0.19 per share.
For further information, please contact:
Grant Ewing
VP Investor Relations and Corporate Development
Email: investor@tahera.com
Web site www.tahera.com
Tel: (416) 777-1998
Fax: (416) 777-1898
Toll Free: (877) 777-2004
Tahera Corporation (TAH:TSE) is engaged primarily in the exploration for and development of diamond deposits in Canada's Northwest Territories and Nunavut
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