TORONTO, April 6 /PRNewswire-FirstCall/ -- The Board of Directors of Tahera Diamond Corporation (TSX-"TAH") announces a proposal to consolidate the Common Shares of the Company on a one-for-five basis. The proposal will be put forward for approval by special resolution of the shareholders at the Company's Annual and Special Meeting of Shareholders on May 15, 2006.
Tahera has accomplished several significant milestones over the last two years leading up to the recent successful start-up of production at its wholly-owned Jericho Diamond Mine, and is well underway to becoming a leading Canadian-owned diamond explorer, developer and mine operator.
There are currently outstanding approximately 769 million Common Shares and 66 million options, warrants and restricted share rights that are exercisable into an equivalent number of Common Shares (subject to satisfaction of vesting requirements). If approved, the consolidation will reduce the number of Common Shares outstanding to approximately 154 million (167 million if all outstanding instruments were converted). The proposed share consolidation will result in shareholders owning fewer shares, but at a higher share price denomination.
Tahera believes that a reduced number of shares will have numerous benefits, including the following:
- Broadened base of potential institutional shareholders
- Enhanced eligibility of the Common Shares for inclusion in certain
stock market indices
- Enhanced eligibility of investing in the Common Shares on a margin
basis
- Enhanced eligibility of the Common Shares for a listing on an
international stock exchange
- Will allow for more meaningful reporting of financial results on a
per share basis
Further information regarding the proposed share consolidation will be available in the Company's Management Information Circular which will be mailed to shareholders on April 19, 2006.
Tahera has scheduled a conference call at 10:00 a.m. Eastern Standard Time on Friday April 7, 2006. Analysts and investors are invited to participate in the call by dialing 416-644-3420 or toll-free 1-866-249-2157. To access a conference replay (available at 1:00 p.m. EST) dial 416-640-1917 or toll-free 1-877-289-8525 and enter pass code 21184603, followed by the number sign.
Tahera Diamond Corporation (http://www.tahera.com/) is a unique Canadian diamond Company. Tahera's primary asset is its wholly-owned Jericho diamond project, which represents Canada's third and Nunavut's first diamond mine. Tahera's diamond purchase and marketing arrangement with Tiffany & Co., one of the world's leading jewelers, ensures that the Company receives competitive market prices for its Jericho diamonds. Tahera has several other prospective diamond projects in Canada's prolific Slave Craton, including the Muskox kimberlite joint venture project with De Beers Canada.
Forward Looking Statements
The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results. There is no assurance that the proposed share consolidation will result in the benefits outlined above. In addition, there is a possibility that the share price of the Common Shares will decline as a result of the share consolidation.
Tahera Diamond Corporation
R. Peter Gillin - Chairman and CEO
Grant Ewing - Executive Vice President
