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Tahera Corporation Announces a Proposed C$12.5 - $13.25 Million Financing |
06/07/2000 |
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Tahera Corporation (the 'Company') is pleased to announce that the Company has signed a term sheet with Edensor Nominees Limited ('Edensor') conditionally providing for certain private placement arrangements that would, upon completion, raise total gross subscription proceeds in the approximate amount of between C$12.5 million and C$13.25 million. The term sheet contemplates that the private placement will consist of 100 million to 106 million common shares of the Company at a subscription price of $0.125 per share. The subscription price will be payable in instalments with approximately $6 million payable at closing and two further instalments of approximately $3.25 million at the end of the third and six months after closing. Edensor is a trustee for the Joseph Gutnick family trust.
As part of the private placement, the Company will issue to Edensor common share purchase warrants (the 'Warrants') entitling Edensor for a 48 month period from closing to subscribe for between 50 million and 53 million additional common shares at a subscription price of $0.15 per common share.
In connection with the foregoing transaction, Edensor will be entitled to appoint three directors to the Board of Directors of the Company at closing. In addition, Mr. Joseph Gutnick will be appointed as the non-executive Chairman and a director of the Company.
The term sheet also contemplates that existing debenture holders of the Company will be provided with the opportunity to convert their respective debentures upon the existing terms of conversion of each debenture and receive up to one additional Warrant per common share issued upon the conversion of such debentures.
Currently there are 176,294,197 shares of the Company issued and outstanding. At the Company's annual and special meeting of shareholders held on May 31, 2000 shareholders approved the issuance of up to that number of common shares by way of private placement over the next 12 months. The proposed private placement to Edensor will not result in change of control of the Company.
The transaction and placements are subject to a number of conditions including the signing of definitive subscription agreements, completion of due diligence and regulatory approval.
Tahera Corporation (TAH:TSE) is focused on exploring its highly prospective landholdings in Nunavut Territory. In tandem with this diamond exploration focus, Tahera is committed to bringing its wholly-owned Jericho Diamond Project to commercial production. Tahera also has interests in extensive exploration landholdings in Nunavut and the NWT through exploration Joint Ventures with Kennecott Canada Exploration Inc. and Ashton Mining of Canada Inc.
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(at)tahera.com, www.tahera.com
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