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Tahera announces financing |
04/25/2000 |
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Tahera Corporation ('Tahera' or the 'Company') today announced that it has entered into arrangements with Dundee Precious Metals Inc. under which Dundee Precious Metals Inc. has loaned Cdn$1,000,000 to Tahera to be used for general corporate and working capital purposes.
The Company intends to repay the loan out of the proceeds of a planned rights issue which the Company proposes to undertake in order to obtain funding for its ongoing exploration and development programs and administrative and overhead requirements. If the proposed financing is not completed by July 31, 2000, the loan is convertible, at the option of Dundee Precious Metals Inc., into common shares of the Company at a conversion price per share based upon the then current market price of the Company's common shares less the maximum applicable TSE discount. The loan is secured by a security interest on the Company's assets and is repayable on demand following August 1, 2000, subject to earlier repayment in the event of a default under the terms of the loan. Interest will accrue on the principal of the loan at a rate of 9% per annum. If Tahera has not entered into a financing agreement by July 1, 2000, the interest rate of the loan will increase by 150 basis points for each month that the principal amount remains outstanding.
Further particulars concerning the proposed financing will be announced when regulatory approval has been obtained.
Tahera Corporation (TAH:TSE) is focused on bringing its wholly owned Jericho Diamond Project in Nunavut Territory to commercial production. In tandem with this development focus, Tahera will continue to explore its highly prospective landholdings in close proximity to the Jericho kimberlite. Any new discoveries in the project area could enhance both the scale and economics of the Jericho Diamond Project.
CONTACT: 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(at)tahera.com,
www.tahera.com
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