Lazare Kaplan to Market Tahera’s Jericho Diamonds
March 10, 03
Miner Tahera Corporation has signed a Letter of Intent (LOI) with Lazare Kaplan to enter into a comprehensive Off-Take and Investment Agreement for Tahera's Jericho Diamond Project.
The Jericho Diamond Project is Canada's next, and Nunavut's first, diamond mine. The Jericho feasibility study indicates that 3,000,000 carats will be produced over a minimum mine- life of 8-years.
Under the terms of the proposed Agreement, Lazare Kaplan will purchase 100 percent of the production from the project, subject to Tahera's option to market up to 25 percent of the mine's diamond production independently.
Lazare Kaplan will receive warrants entitling it to purchase $4 Million of common shares of Tahera at a price of Cad. $0.22 per share. The warrants will have a maturity of one year from the closing of the Jericho Diamond Project financing.
Lazare Kaplan could end up owning approximately 10 percent of Tahera's outstanding common shares. Lazare Kaplan investment is subject to Tahera securing the balance of funding for development and operation of its Jericho Diamond Project.
For the duration of the Jericho Diamond Project, Tahera will have the right to convert the Off-Take Agreement with Lazare Kaplan to a rough-diamond marketing agreement. In addition, Tahera will have the right to participate in a joint venture with Lazare Kaplan as equal partners for the polishing of diamonds produced by the project, including special stones.
Following its investment, Lazare Kaplan will have the right to a seat on Tahera's Board of Directors and the right to participate in Tahera's other diamond projects under the same terms and conditions as set forth in the LOI.
The two companies plan to reach an agreement by July 2003.