RAPAPORT... The Tache Group and mining company Shear Diamonds Ltd. formed a strategic alliance under which Tache will purchase the diamond production from Shear's Jericho diamond project in Nunavut, Canada and provide financing.
Tache will offer debt financing to the mining company of $2 million as a term loan, repayable in 12 monthly installments once Shear begins to receive proceeds from Jericho diamonds, and a $3 million revolving credit facility that can be drawn against once Shear has begun shipping diamonds from the existing recovery stockpiles.
Shear's chief executive, Julie Lassonde, explained, ''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.
''We are delighted to have built this relationship with Tache. Tache's reputation as a family run organization and industry leader has created strong pillars for this strategic alliance and Shear looks forward to working closely with Tache," said Lassonde.
Jacky Tache added, ''We at Tache are always looking for long term relationships with our suppliers and customers alike. This agreement provides an exciting new strategic alliance for Tache whilst respecting our need to partner with a group that shares our vision and our values.''