Norm Poole
Northern News Services

Yellowknife (Mar 17/03) - Tahera Corporation has entered into a diamond-finishing agreement with Lazare Kaplan International, of New York.

The proposed 'off-take and investment' agreement gives Lazare Kaplan 100 per cent of the production from Tahera's Jericho Diamond Project, located near the Lupin Mine.

The deal enables the mining company to retain up to 25 per cent of the production, however, for local plant needs or for its own marketing purposes, said Tahera's Greg Missal.

The deal would give Lazare Kaplan warrants to purchase $4 million US in Tahera shares, subject to Tahera securing funding for development and operation of the mine.

Pending regulatory approval, Jericho would be Nunavut's first diamond mine.

The Nunavut Water Board will hold hearings May 26-30 in Cambridge Bay, Kugluktuk and Gjoa Haven on the company's environmental impact statement.

Missal said Tahera hopes to gain approval for the project in time to order equipment for transport to the mine site next winter. Jericho is projected to produce about three million carats over an eight-year life.

The company will continue to explore the Jericho property for additional kimberlites during the mine development process, said Missal.