Failing diamond miner Tahera Diamond(TAH-T, TAHEF-O), which has been under creditor protection since January, has put itself up for sale, hiring financial advisory firm Franklin Capital Partners to find a buyer.
Tahera also says that it will miss the March 31 deadline to file its 2007 financial results and management discussion and analysis (MD&A) of the company’s financial condition.
How late the items will be, Tahera couldn’t say.
“Tahera does not know at this point in time when it would be in a position to prepare and file its financial statements and MD&A as such filings will be driven by the outcome of its financing and restructuring efforts,” the company said in a statement.
Tahera suspended mining its struggling Jericho diamond operation in Nunavut in February to preserve the company’s existing cash position and fuel inventory as it worked out a restructuring plan. Diamond recovery was expected to continue for about two months as the company finished processing higher-grade stockpiles.
In December, the single-asset company tried to raise a $40-million equity financing at 6.5 per unit. It withdrew the offering a month later when it became obvious that it would not succeed.
The company needs to either find a buyer or raise some money by June 30, when its extended creditor protection period will end.
Tahera has asked that a cease-trade order be imposed against some or all people who have been directors, officers or insiders of the company since Sept. 30, 2007.
The company has cut its board of directors in half to four people, who will act in an advisory capacity to management as the Jericho mine is put on care and maintenance.
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