The Ontario Superior Court has approved the sale of the defunct Jericho Diamond Mine from Tahera Daimond Corp. to Shear Minerals Ltd. for $38 million. Shear will acquire the mine, all processing facilities and all supporting exploration assets located 400 kilometers north east of Yellowknife in Western Nunvat.
Shear CEO Pamela Strand said that the company plans to develop all of the assets they receive in the purchase. The company, focused on diamond exploration in the Canadian north, plans to continue exploring the Jericho area for diamond deposits and hopes to establish a new diamond district.
Currently, Shear has a portfolio of ten diamond projects in total, eight of which they categorize as "drill-ready." Its property in Nanavut which is majority owned (58%) by Churchuil Diamond, has recently been advanced from a conceptual grassroots project to a new kimberlite district.
The definitive purchase agreement of the Jericho Diamond Mine includes a clause requiring that Shear complete a minimum of $10 million equity financing, complete related development work and get approval from the TSX Venture Exchange as well as other relevant regulatory organizations.
“The approval of the Court satisfies an important condition precedent to the closing of the Jericho acquisition,” said Strand. “We are very pleased to have succeeded in achieving this milestone in the sale process. It brings greater certainty to the acquisition, and allows us to focus our efforts on obtaining the equity financing and closing transaction.
The Jericho mine opened in 2006, but shut down after only two years due to financing, management and operational problems.
