Special Shareholders Meeting
Tahera Corporation held a Special Shareholders’ meeting on September 27, 2000 at which shareholders overwhelmingly voted in favor of approving, among other business, the issuance of the Corporation’s Common Shares and Series A Warrants to Edensor Nominees Pty Ltd. (“Edensor”) in connection with the previously announced private placement. Edensor is a trustee for the Joseph Gutnick family trust.
Edensor Financing
The Edensor financing involves the staged issue of 104,000,000 Common Shares of Tahera to Edensor at an average price of $0.125 per share for gross proceeds of $13,000,000, and the issue of approximately 52,000,000 Series A Warrants. The Series A Warrants are exercisable for a period of 48 months from the date of issue at a subscription price of $0.15.
The second stage of the Edensor financing was finalized on October 31, 2000 and involved the issuance to Edensor of 25,234,653 Common Shares, 10,544,026 Series A Warrants and 10,131,450 Special Warrants for gross proceeds of $2,977,689. The latest stage of the Edensor financing occurred on November 14, 2000 and involved the issuance to Edensor of 27,542,373 Common Shares and 26,720,757 Series A Warrants for gross proceeds of $3,250,000.
The final stage of the Edensor financing is expected to occur on or about March 1, 2001 and will involve the issuance of 21,666,667 Common Shares (exercise of Special Warrants) at a price of $0.15 for proceeds of $3,250,000. Following this final stage, Tahera Corporation will have 288,766,254 shares outstanding of which Edensor will own 104,000,000 shares.
Winter Exploration Program
Tahera’s exploration team is currently preparing for a ground geophysics and drilling program in the Jericho area that is scheduled to commence in early 2001. Any future economic kimberlite discoveries on Tahera’s landholdings in the vicinity of the Jericho diamond pipe may potentially enhance the scale of Tahera’s planned diamond mining operation.
Jericho Diamond Project
The feasibility study, completed in June 2000, indicates that the Jericho Diamond Project (the “Project”) is technically and economically robust with potential production in excess of 3,000,000 carats over 8 years. Tahera submitted a water permit application and two land lease applications for the Project to the regulatory authorities in September 2000. A revised Environmental Impact Study (EIS) for the Project was submitted to the regulatory authorities in November 2000. Tahera is optimistic that regulatory approvals for the Project will be received during 2001, leading to commercial diamond production in 2003.
Summary of Financial Results
For the three months ended September 30, 2000 Tahera recorded a loss of $614,000 or $0.003 per share compared to a loss of $1,035,000 or $0.007 per share for the third quarter of 1999. Operating expenses for the third quarter of 2000 were $591,000 compared to $1,079,000 for the comparable period of 1999. Savings for the three months ending September 30, 2000 include reductions in salaries resulting from fewer employees and reduced financing costs.
Management and Board Appointments
Tahera is pleased to announce that Mr. Joseph Gutnick has been appointed Executive Chairman of the Corporation, and Mr. Paul Stein has been elected a Director of the Corporation to replace Mr. Glenn Laing, who resigned. In addition, Mr. David Gold has been appointed Vice President Corporate Affairs, and Mr. Martin St. Pierre has been promoted to the position of Vice President Exploration. Mr. Roy Meade resigned from his position as a Director of the Corporation in October 2000.
The common shares of the Company trade on The Toronto Stock Exchange under the symbol "TAH”.
For further information, please contact:
Grant Ewing
Vice President Investor Relations & Corporate Development
Tel: (416) 777-1998
Fax: (416) 777-1898
Toll Free: (877) 777-2004
Email: investor@tahera.com
Web site: www.tahera.com
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.
|