Tahera Completes Offering and Enters into Definitive Agreements with Tiffany & Co.

On November 8, 2004, Tahera Diamond Corp. completed a fully marketed equity offering of an aggregate of 147,835,000 common shares for gross proceeds of approximately $50 million. The offering of the common shares was qualified by short form prospectus filed in all provinces of Canada. A syndicate of underwriters led by GMP Securities Ltd., and including TD Securities Inc., National Bank Financial Inc., Dundee Securities Corp., Westwind Partners Inc. and Paradigm Capital Inc., acted in connection with the sale of the common shares issued from treasury.
Concurrent with the closing of the offering, Tahera Diamond entered into a diamond purchase and marketing agreement with a subsidiary of Tiffany & Co. whereby the Tiffany subsidiary will purchase a portion of the diamond production from Tahera’s Jericho Diamond Project for its own manufacturing requirements, and will sell the balance of the production on behalf of Tahera into the international market for a fee. The diamond purchase and marketing agreement also provides Tahera with a share in the manufacturing profits on diamonds purchased by Tiffany. Tahera also entered into a $35 million credit facility with Tiffany to finance the development and construction of a diamond mine on the Jericho Property.
Tahera Diamond was represented by Cassels Brock & Blackwell LLP with a team composed of Paul Stein and André Boivin (securities), Erik Goldsilver (business), Renate Herbst and Bruce Bell (financial services) and Christopher Norton (tax).
The underwriters were represented by Goodman and Carr LLP with a team that included Jenny Chu Steinberg and Peter Laflamme.
Tiffany & Co. was represented in-house by Patrick Dorsey, senior vice-president, secretary and general counsel, and Goodmans LLP with a team comprising of Stephen Halperin, Grant McGlaughlin, Corie Garbati (corporate/securities) and Jay Feldman and Steven Kresak (banking).