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Tahera Diamond Corporation Completes Cdn.$45,050,000 Equity Financing & Enters into Definitive Agreements with Tiffany & Co. |
11/08/2004 |
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Tahera Diamond Corporation (TSX-TAH) announced today that it has closed its previously announced offering of common shares for gross proceeds of Cdn.$45,050,000. A syndicate of underwriters led by GMP Securities Ltd., and including TD Securities Inc., National Bank Financial Inc., Dundee Securities Corporation, Westwind Partners Inc. and Paradigm Capital Inc., acted in connection with the sale of 132,500,000 common shares from treasury at a price of $0.34 per share. The Company also granted the underwriters an over-allotment option to purchase up to 15,335,000 additional common shares for a period of 30 days from the closing of the offering for additional proceeds of up to $5.2 million.
Tahera also announced that it has entered into a diamond purchase and marketing agreement and a credit agreement with a wholly-owned subsidiary of Tiffany & Co.
Under the terms of the diamond purchase and marketing agreement, a subsidiary of Tiffany will purchase a portion of the diamond production from Tahera’s Jericho Diamond Project for its own manufacturing requirements, and will sell the balance of the production on behalf of Tahera into the international market for a fee. The diamond purchase and marketing agreement also provides Tahera with a share in the manufacturing profits on diamonds purchased by Tiffany on a formula basis.
Pursuant to the credit agreement, a $35 million credit facility will be available to Tahera to finance the development and construction of a diamond mine on the Jericho Property.
Tahera will use the net proceeds of the offering towards the financing of the development and construction of the Jericho Diamond Mine and for general working capital purposes. With the ability to draw down on the credit facility, Tahera will be sufficiently funded to complete development and construction of its Jericho Diamond Mine.
THE SECURITIES BEING OFFERED HAVE NOT BEEN, NOR WILL BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT U.S. REGISTRATION OR AN APPLICABLE EXEMPTION FROM U.S. REGISTRATION REQUIREMENTS. THIS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.
About Tahera Diamond Corporation
Tahera Diamond Corporation (www.tahera.com) is a unique Canadian diamond Company focused on developing its wholly-owned Jericho Diamond Project as CANADA'S NEXT and NUNAVUT'S FIRST DIAMOND MINE. Tahera recently entered into an arrangement with Tiffany & Co., one of the world’s leading jewelers, with respect to a diamond purchasing, marketing, and finance agreement for the Jericho Diamond Project. Tahera has several other very prospective diamond projects in Canada's prolific Slave Craton. The common shares of the Company trade on the TSX under the symbol 'TAH'.
Tahera Diamond Corporation
R. Peter Gillin – Chairman and CEO
Grant Ewing – Executive Vice President, Corporate Development
Investor Relations:
Tel: (416) 777-1998 Fax: (416) 777-1898 Toll free: (877) 777-2004
Email: investor_relations@tahera.com
Website: www.tahera.com
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