Tahera Suspending Mining as Cash Runs Out
January 24, 08
Tahera Diamond Corporation will suspend mining activities at the Jericho mine in approximately two weeks, the embattled miner said Wednesday. “The suspension of mining will preserve the company's existing cash position and fuel inventory at the mine while it works on its previously announced re-structuring plan,” it said in a press release. Last week Tahera obtained protection from creditors pursuant to the provisions of the Companies' Creditors Arrangement Act (CCAA) from the Ontario Superior Court of Justice for a 30-day period, to expire on February 14. It sought CCAA protection after announcing that its cash flow and cash on hand would not allow it “to meet its current obligations and its obligations with respect to the 2008 winter road resupply,” it said. Following the suspension of mining activities, ore processing and diamond recovery are planned to continue for approximately two months or until the high-grade ore stockpiles are exhausted. Tahera said it will make a concerted effort of mining over the next two weeks to maximize high-grade ore stockpiles. Nuna Logistics has agreed to provide site services, as required, once mining operations have been suspended and while ore processing continues. Finally, the company plans to “assess all options” with the goal of continuing operations at its Jericho Mine