TORONTO, Jan. 16 /CNW/ - Tahera Diamond Corporation ("Tahera" or the
"Company") (TSX: TAH) announced today that it intends to file an application
for protection from creditors pursuant to the provisions of the Companies'
Creditors Arrangement Act ("CCAA"). Tahera is seeking protection under CCAA,
as its current cash flows and cash on hand would not allow it to meet its
current obligations and its obligations with respect to the 2008 winter road
resupply. Tahera's application under CCAA is subject to the approval of the
Ontario Superior Court of Justice.
The CCAA filing follows a review of the Company's options by Tahera's
board of directors. It was determined by the board of directors that, as a
result of insufficient indications of interest in Tahera's best efforts equity
offering and the absence of any viable strategic alternatives at this time,
seeking CCAA protection would be in the best interest of all stakeholders. The
CCAA process will stay creditors and others from enforcing rights against
Tahera and its subsidiaries and will allow Tahera to restructure its
operations and find the alternative that will be in the best interest of all
stakeholders. Tahera currently intends to continue its day-to-day operations,
while under CCAA protection.
Although CCAA protection enables Tahera to continue its day-to-day
operations until its CCAA status changes, the implications for Tahera
shareholders are less clear and will not be able to be determined until the
end of the restructuring process and will depend upon the terms of the
restructuring plan approved by the affected stakeholders.
The Company will withdraw its amended and restated preliminary prospectus
filed in connection with its best efforts units offering.
FORWARD LOOKING STATEMENTS
Certain information regarding Tahera in this news release including
management's assessment of future plans and operations and the timing thereof,
may constitute forward-looking statements under applicable securities laws and
may necessarily involve risks including, without limitation, risks associated
with mineral exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity and diamond prices,
currency fluctuations, imprecision of reserve and resource estimates,
environmental risks, competition from other producers, inability to retain
services, delays resulting from or inability to obtain required regulatory
approvals, the ability to access sufficient capital and the uncertainty
involved in Court proceedings and the implementation of a Plan under the CCAA.
As a consequence, Tahera's actual results, performance or achievements could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be given that
any events anticipated by the forward looking statements will transpire or
occur, or, if any of them do so, what benefits Tahera will derive therefrom.
Readers are cautioned that the foregoing list of factors is not exhaustive.
Furthermore, the forward-looking statements contained in this news release are
made as of the date this news release and Mystique does not undertake any
obligation to update publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events or
otherwise, except as may be required by applicable securities laws.
Tahera Diamond Corporation
R. Peter Gillin - Chairman and CEO
For further information:
For further information: Investor Relations, Tel: (416) 777-1998, Fax:
(416) 777-1898, Toll free: (877) 777-2004, Email:
email@example.com, Website: www.tahera.com