Tache Forms Strategic Alliance With Shear Diamonds

(IDEX Online News) - Shear Diamonds Ltd. signed agreements with diamond dealers Taché Company N.V. securing debt financing and forming a strategic alliance under which Taché will purchase the diamond production from Shear’s Jericho diamond project in Nunavut. Shear will participate in final net profits from Taché’s sales of the Jericho diamonds either as rough or polished stones.

The debt financing to be provided by Taché includes a $2 million term loan repayable in 12 equal monthly installments once Shear begins to receive diamond sales proceeds from the existing recovery concentrate stockpiles at Jericho, and a $3 million revolving credit facility which can be drawn against once Shear has begun shipping diamonds.

“This alliance is significant for Shear in both the short and long term. The debt provides us with the capital required to begin processing our recovery stockpiles in the near term, as well as long term support in the form of a marketing agreement that has Shear participating in profits on the sales of both the rough and, more importantly, the polished stones,” commented Shear CEO Julie Lassonde.

“We at Taché are always looking for long term relationships with our suppliers and customers alike. This agreement provides an exciting new strategic alliance for Taché whilst respecting our need to partner with a group that shares our vision and values,” commented Taché CEO Jacky Taché.