TORONTO Cash-strapped TAHERA DIAMOND CORP. has proposed a $36.7-million rights offering intended to keep its Jericho mine open. The company has been losing money ever since the mine opened in Nunavut in 2006. For example, production costs during the third quarter of 2007 were $17.9 million, but the diamonds recovered sold for only $6.9 million. Similar results were also achieved in the second quarter.
Tahera has also entered into an agreement with TIFFANY & CO. to convert some of its debt into equity. A separate agreement with NUNA LOGISTICS, the mining contractor at the Jericho mine, will see the contractor accept Tahera shares in lieu of the money owed it by Tahera. Nuna has also made concessions on the costs of labour and mining equipment.
Details of these arrangements are available in the press releases at www.Tahera.com.