The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Tahera Diamond Corp. Dec. 15 said it got court approval to cease operations at the Jericho Mine in Nunavut on Dec. 13.
The Department of Indian and Northern Affairs Canada, meanwhile, intervened under territorial law and intends to retain Tahera's former employees to conduct ongoing care and maintenance of the defunct diamond mine.
Toronto-based Tahera said the shutdown and government takeover of care and maintenance was needed because the company lacked funds to continue care and maintenance of Jericho and because it had failed to find a buyer for company assets. Tahera terminated all remaining staff, effective Dec. 12, and said it will close its office, effective Dec. 31.
As part of the transition, Peter Gillin has resigned as chief restructuring officer, and a corporation managed by Andrew Gottwald, Tahera's former chief financial officer, has been appointed by Canada's bankruptcy court to continue the restructuring.
The court also approved an extension to Tahera's protection from creditors until Jan. 23.
During this period, the company will try to sell its remaining assets in consultation with Caz Petroleum Inc., its leading secured creditor. On Nov. 21 Caz notified the court's monitor that it had acquired the debt formerly held by Laurelton Diamonds Inc.
No value is expected to remain available to shareholders in the disposition of Tahera's assets.
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