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Tahera and BHP Finalize Ranch Lake Kimberlite / ICE Claims Joint Venture |
10/29/2001 |
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Tahera Corporation is pleased to announce that BHP Diamonds Inc., a subsidiary of BHP Billiton, and Tahera have finalized the joint venture agreement relating to Tahera's Ranch Lake kimberlite and ICE
Claims (see press release dated June 13, 2001).
BHP Billiton operates the world class EKATI(TM) Diamond Mine in the Northwest Territories. The Ranch Lake kimberlite, situated on the ICE Claims, is located 75 kilometers northwest of the EKATI(TM) Diamond Mine and 85 kilometers south of Tahera's Jericho Claims. The ICE Claims encompass approximately 200,000 hectares.
Existing Discovered Kimberlites
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To earn a 55% interest in existing discovered kimberlites, BHP Billiton is required to commence the extraction of a 200 tonne bulk sample from one of the discovered kimberlites (including the Ranch Lake kimberlite) by July 2003, and must fund and complete a feasibility study.
A small mini-test sample extracted from the Ranch Lake kimberlite in 1993 indicated that the kimberlite is diamondiferous (5.3 carats derived from 28 tonnes). Further work is required to assess the economic significance of the pipe as a whole.
New Kimberlite Discoveries
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BHP Billiton will have the right to fund exploration and earn a 51% interest in any new kimberlite discoveries on the joint venture landholdings by completing a 200 tonne bulk sample on any new kimberlite discovered. In addition, BHP Billiton will have the right to earn a further 14% interest (to
65%) in any new discovery by funding a feasibility study.
Upon completion of a feasibility study and a decision to proceed to develop any of the kimberlites on the joint venture landholdings, BHP Billiton will have the right to arrange project financing for Tahera. On advising Tahera of its intention to provide project financing, BHP Billiton will have the right to an additional 5% equity interest in the project. Tahera will also have the right to request that BHP Billiton provide project financing under the same terms as above.
BHP Billiton will receive diamond marketing rights for any diamonds produced from the Ranch Lake kimberlite/ICE Claims joint venture for the first 5 years, or until repayment in full by Tahera of all amounts due to BHP Billiton in respect of mine financing, whichever occurs last. Following this, marketing rights will be determined by mutual consent or will be proportional to each party's equity interest in the joint venture.
The ICE Claims are subject to a 1% gross royalty based on future diamond production from kimberlites discovered on the claims before April 23, 2001.
To find out more about Tahera Corporation (TSE: TAH), visit our website, www.tahera.com
%SEDAR: 00003313E
13010399SRF13011678-0842522452212
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
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