Troubled Tahera Diamond Corp intends to satisfy the alternative information guidelines recommended by Ontario Securities Commission (OSC) Policy 57-603 and Canadian Securities Administrators Staff Notice 57-301. The company requested from the OSC, that a management cease trade order (MCTO) related to its securities be imposed against some or all persons who have been directors, officers or insiders of the company since September 30, 2007. After consideration of Tahera’s request, the OSC indicated it would not issue a MCTO at this point in time. The OSC requested that Tahera provide bi-weekly up-dates by way of news release, in accordance with the alterative information guidelines under Policy 57-603 and Staff Notice 57-301. The following constitutes the first bi-weekly up-date of the company under the alternative information guidelines.
The total number of dry tonnes processed during the fourth quarter of 2007 was 155,000 t at an average grade of 0.79 ct/t, resulting in production of 122,500 ct compared with 127,500 t at an average grade of 0.78 ct/t for output of 99,300 ct for the third quarter of 2007. The value of production for the fourth quarter of 2007, based on values of the Government Diamond Valuators, was $11.6 million, compared with $8.4 million in the third quarter of 2007. The cash operating cost related to the production of these goods was C$18.3 million for the fourth quarter of 2007 compared with C$17.9 million for the third quarter. These costs include all mining, processing and related overhead charges for the quarter. Certain of the cash items consumed during these periods were purchased and paid for in a prior period.
The company has held two valuations for goods produced in 2008. Production from January 1, 2008 to February 5, 2008 yielded 45,026 ct at an average value of $95.32/ct for a total value of $4.3 million. Production from February 6, 2008 to March 12, 2008 included two parcels of goods. Normal run of mine production totalled 31,271 ct at an average value of $106.96/ct and a batch test of the F1N lobe yielded 2,768 ct at an average value of $87.80/ct. The combined total for the two parcels from the March valuation was 34,039 ct at an average value of $105.40/ct for total value of $3.6 million.
As previously reported, mining was suspended at the Jericho mine on February 6, 2008, to conserve cash and fuel inventory while restructuring efforts continued. Processing of ore is now expected to continue until the end of the third week of April 2008. All mining contractors have now demobilisd their equipment, supplies, and personnel. The cmpany has purchased certain items required for the Care & Maintenance period, which is expected to begin shortly after production is completed as the mine site assets are properly prepared for a period of inactivity.
As previously announced, Tahera has initiated a court approved marketing process of the assets of the company, which requires interested parties to submit written expressions of interest by no later than April 28, 2008. Blair Franklin Capital Partners have been retained to manage and provide guidance during the marketing process. As previously announced, on January 16, 2008, Tahera entered into protection under the Companies’ Creditors Arrangement Act (CCAA). The stay period under the court order extends to June 30, 2008.