Tahera Diamond set to cease operating within three weeks: CCAA extended

Published Monday December 1st, 2008

THE CANADIAN PRESS

TORONTO - Tahera Diamond Corp. (TSX:TAH) has been given an extension of its protection from creditors until Dec. 12, but said Monday it has found no new funding and will likely be forced to cease operation.

Tahera, which suspended mining at its Jericho site in Nunavut earlier this year to conserve cash, received the latest extension of its stay under the Companies' Creditors Arrangement Act, but said it has been unable to find a purchaser for its assets or alternative financing.

The company, which entered CCAA protection last January, had previously indicated it had a deal to be bought by a Vancouver-based group.

"In the absence of additional funding, the company currently estimates that its cash reserves will be exhausted at a point in time approximately between Dec. 15, 2008 and Dec. 22, 2008, at which time the company will be forced to cease operating," Tahera said Monday.

"It is anticipated that there will be no value for holders of Tahera's common shares."

The stock last traded at half a cent on the TSX, down from 21 cents a year ago and from a peak of $4 in early 2006.

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