Tahera Diamond Corporation
TSX : TAH

Tahera Diamond Corporation

April 03, 2007 08:52 ET

Tahera Diamond Corporation Announces Terms of Offering

TORONTO, ONTARIO--(CCNMatthews - April 3, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Tahera Diamond Corporation (TSX:TAH) (the "Company") announced today, further to its previously announced offering (the "Offering") of units ("Units") on April 2, 2007, that it has entered into an underwriting agreement with a syndicate of underwriters led by GMP Securities L.P. and including National Bank Financial Inc., Paradigm Capital Inc., TD Securities Inc. and Westwind Partners Inc., to sell 22,500,000 Units at a price of C$1.00 per Unit to raise gross proceeds of C$22,500,000 pursuant to a short form prospectus. Each Unit will consist of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one additional Common Share for a period of two years following the closing of the Offering. In addition, the Company has granted the underwriters an over-allotment option to purchase up to that number of additional Common Shares and half-Warrants equal to 15% of the Units sold pursuant to the Offering, exercisable at any time up to 30 days from the closing of the Offering. The Offering is subject to certain conditions, including regulatory and TSX approval.

The Company intends to use the net proceeds for operating costs of the Jericho Diamond Mine, the payment of existing trade payables and for general working capital.

The Offering is expected to close on or about April 17, 2007.

Tahera Diamond Corporation (www.tahera.com) is a unique Canadian diamond company. Tahera's primary asset is its wholly-owned Jericho Diamond Mine, which represents Canada's third and Nunavut's first diamond mine. Tahera's exploration strategy is focused on increasing reserves in the area that is within trucking distance of the Jericho mine-site, and advancing the Company's other prospective diamond projects in Canada.

Certain statements contained in this news release constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company's plans to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made, and readers are advised to consider such forward-looking statements in light of the risks set forth in the Company's Annual Information Form dated March 30, 2007, a copy of which is available at www.sedar.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act of 1933.

Contact Information

  • Tahera Diamond Corporation
    Investor Relations
    (416) 777-1998 or Toll Free: 1-877-777-2004
    (416) 777-1898 (FAX)
    Email: investor_relations@tahera.com