TORONTO, Aug. 2 /CNW/ - Tahera Corporation ('Tahera') is pleased toannounce that a subscription agreement for a financing has been signed withEdensor Nominees Limited ('Edensor'), a trustee for the Joseph Gutnick FamilyTrust. The financing involves the staged issue of approximately 104,000,000 Common Shares of Tahera to Edensor at an average subscription price of $0.125for gross proceeds of $13,000,000, and the issue of approximately 52,000,000Series A Warrants at a price of $0.15. The Series A Warrants are exercisablefor a period of 48 months. Upon exercise of the warrants, the total financingwill exceed $20,000,000.
In a separate transaction, Dundee Precious Metals Inc. has agreed toconvert $950,000 of the principal amount of the previously issued securedconvertible debenture into 7,600,000 Common Shares and 3,800,000 Series AWarrants.
Financing Details
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Three debentures in the aggregate principal amount of $800,000 have beenissued by Tahera to Edensor, and will be converted into 6,485,874 CommonShares at an average price of $0.123. In addition, 3,200,000 Series A Warrantshave been issued by Tahera to Edensor.
Tahera will issue 23,070,433 Common Shares to Edensor at a price of$0.118 for proceeds of $2,722,311 on the first closing, which is scheduled tooccur on or about August 14, 2000. Tahera will also issue 11,535,217 Series AWarrants and 11,535,217 Special Warrants to Edensor.
A Special Shareholders' meeting will be convened on or aboutSeptember 27, 2000 for the purpose of approving, among other business, theissuance to Edensor of Tahera Common Shares and Series A Warrants followingthe first closing.
Subsequent to the Special Shareholders' meeting, Tahera Corporation willissue 52,777,026 Common Shares to Edensor at a price of $0.118 in two separateclosings that will take place within 45 calendar days of the SpecialShareholders' meeting. Tahera will also issue 37,264,783 Series A Warrants andan additional 10,131,450 Special Warrants to Edensor. All of the SpecialWarrants will be exercised at a price of $0.15 six months from the date of thefirst closing.
Joseph Gutnick To Be Appointed Non-Executive Chairman
Three nominees of Edensor will be appointed to the board of directors ofTahera. Mr. Joseph Gutnick will be appointed non-executive Chairman of theCompany. Completion of the above transactions, including the appointment ofdirectors, are subject to agreed upon business conditions and regulatoryapproval.
Joseph Gutnick is one of Australia's leading mining entrepreneurs. He iscurrently Chairman and Managing Director of eight publicly listed Australianand United States companies, two of which are actively involved in diamondexploration. Joseph Gutnick headed the team that was responsible for thediscovery and development of several successful world-class mines inAustralia, namely the Bronzewing and Jundee gold mines, and the Cawse lateritenickel project. Mr. Gutnick is also Chairman of Baynet Ltd. (OTC BB: BAYU).Baynet is developing a neutral Portal that will specifically cater tocompanies operating in the global mineral exploration, extraction andprocessing industry.
Developing the Jericho Diamond Project
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Tahera will use the proceeds of the financing for general corporatepurposes, to fund ongoing exploration activities over its highly prospectivelandholdings in Nunavut Territory and to develop its wholly owned JerichoDiamond Project.
The feasibility study completed in June 2000 indicates that the JerichoDiamond Project is technically and economically robust with potentialproduction in excess of 3,000,000 carats over 8 years. Any future economickimberlite discoveries on Tahera's landholdings near the Jericho kimberlitewill significantly increase the upside potential of the Jericho DiamondProject.
Tahera management welcomes the support that Joseph Gutnick is providingthrough his significant investment in the Company. With this financing, Taherahas addressed one of its key challenges and has renewed confidence in beingable to source the required project financing for construction of the JerichoDiamond Project.
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For further information: please contact: Grant Ewing, Vice President Investor Relations and Corporate Development, Tel: (416) 777-1998, Fax: (416) 777-1898, Toll Free: (877) 777-2004, email: investor@tahera.com, www.tahera.com
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