Tahera Diamond Corporation

Tahera Diamond Corporation

January 18, 2010 16:42 ET

Tahera Diamond Corporation Announces Commencement of Jericho Diamond Mine Sale Process

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2010) - Tahera Diamond Corporation and its wholly- owned subsidiary, Benachee Resources Inc., (the "Companies") announced today that they have received the necessary approvals to pursue a sale ("the Sale") of their Jericho Diamond Mine and all related milling, mining and exploration assets.

Opened in 2006 in Nunavut, the Jericho Diamond Mine produced a total of 786,000 carats of gem quality diamonds, including over 1,100 stones greater than 10 carats and one stone greater than 58 carats. Operations were suspended in June 2008, at the 100 meter mining level, due to financial and operating constraints and the facility was placed on care and maintenance.

An updated resource estimate (September 2009) from the Central Lobe kimberlite pipe, above the 280 metre level, estimated Indicated resources of 1.14 million tonnes grading 1.40 carats per tonne with an addition 0.48 million tonnes grading 1.23 carats per tonne in the Inferred resource category. The Central Lobe remains open to depth. Inferred resources from kimberlite pipes located immediately adjacent to the Central Lobe were estimated to contain an additional 3.79 million tonnes grading 0.58 carats per tonne.

A new Economic Assessment – Scoping Study (January 2010), which includes the updated resource estimate, was commissioned by Tahera from SRK Consulting, AMEC and Procon Mining and is available on the website noted below.

In addition to the Jericho Diamond Mine assets, the Companies have a joint venture (50/50) with DeBeers (the Polar Project) on lands overlying the diamondiferous Muskox kimberlite complex and a joint venture with Kennecott (75% Tahera / 25% Kennecott) on lands encompassing the diamondiferous Anuri kimberlite complex (the Rockinghorse Project). These Nunavut joint venture interests and other exploration assets are included in the Sale.

The Sale process commences immediately. The Sale may be by either a sale of shares of subsidiary companies or by way of an outright asset sale. Offers for either all or portions of the assets will be considered, although en bloc offers will be given higher consideration. Proposals are due by March 1, 2010. Final settlement of a purchase and sale agreement will occur during early March with a planned closing date of March 30, 2010. The Companies will review all offers, whether on a going-concern, care and maintenance with later development, or on a salvage and equipment value basis. Consideration may be cash, private securities, marketable securities and/or the provision of a mine production royalty. A Draft Purchase and Sale agreement will be provided on the website to assist interested parties in making an offer.

Information regarding the Sale process, the mining and exploration assets, reclamation licenses and bonds, various feasibility and engineering reports as well as the Companies' consolidated financial, operating and corporate history is available at:


Interested parties are strongly encouraged to access this comprehensive website. No confidentiality agreements or passwords are required to access the information on the website. Site tours will be available at the Companies' discretion to prospective purchasers. These will be conducted in the month of February.

The Companies reserve the right to enter into exclusive negotiations and complete a transaction on, before or after the March 1, 2010 proposal deadline. Proposals will be selected on a number of criteria, and the apparent highest value proposal, or any, may or may not be accepted.

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