VANCOUVER – TECK COMINCO is becoming a diamond producer by buying up as much as 25% of Toronto-based TAHERA DIAMOND CORP., which operates the newly launched Jericho mine in Nunavut. Teck Cominco is investing $30 million in 30.0 million shares and 22.1 million Tahera share purchase warrants.
For its part Tahera said in a press release that its goal of becoming the leading Canadian-owned diamond exploration and mining company is strengthened significantly because it can draw upon Teck Cominco’s technical and financial strengths. Tahera plans to use Teck Cominco’s investment to fund capital improvements at the mine in a bid to boost production.
Teck Cominco, so long as it maintains at least a 10% interest in Tahera, will have the right to nominate a director to the Tahera board and the right to maintain its ownership percentage should Tahera made an equity issue down the road.
The deal is set to close by the end of November 2006, subject to a number of regulatory approvals and the wording of the definitive agreement.