NUNAVUT TAHERA CORP. and DE BEERS CANADA are forming a joint venture to explore De Beers' property adjacent to the Jericho project, which received federal approval earlier this month. The joint venture property covers 36,000 ha and contains four known diamondiferous kimberlites. The largest is the Muskox pipe located 14 km west of Jericho.
The agreement offers Tahera the opportunity to earn a 50% interest in the property through expenditures of $11 million by 2008. Each party may increase its interest in individual development projects depending on the project value. For projects with a defined value of $750 million or less, Tahera will be the operator and may increase its interest to 75% by making certain payments to De Beers. For larger projects where the construction of a new, stand-alone processing plant will be economic, De Beers will be the operator and may increase its interest to 70% by making certain payments to Tahera. The operator will market production in each case.
The partnership looks to be a logical arrangement for two of Canada's emerging diamond producers. Learn more about the Jericho project at www.tahera.com and De Beers' Snap Lake project at www.DeBeersCanada.com.