Report: Tahera Seeking to Consolidate Shares Ahead of Earnings

According to a report in Canadian Press, Tahera Diamonds, developers of the Jericho diamond Project, is seeking to consolidate its shares before starting to generate revenues from its up and coming diamond mine in Canada.

The move is understood to be a prelude to bringing in big institutional investors. In the meantime, the future miner is planning a reverse stock split.

The Jericho diamond project in Nunavut is expected to go online in less than a year, sometime in the first quarter of 2006.

"When you've got 780 million shares outstanding, that's a lot of shares to divide earnings into,” CEO Peter Gillin said at Tahera's annual meeting, fueling the talk of share consolidation.

According to one analyst, quoted by Canadian Press, it’s almost a necessary move.

“Jericho is a fairly small, discrete pipe, and it has a finite production profile,” says analyst David Davidson of Paradigm Capital Inc. “So what is going to be really imperative, I guess in the next few years, is for them to find other things that they can provide.”

Tahera stock (TSX:TAH) has been trading for up to C$0.61 during the past year on the Toronto Stock Exchange.

Tahera has a marketing and project financing agreement with luxury retailer Tiffany & Co. Tiffany will purchase or market all of the diamond production from Tahera's Jericho Diamond Project, and provide Tahera with a C$35 million (US$29.1 million) loan facility to assist in financing construction of the project.