TORONTO, March 20 /CNW/ - Tahera Diamond Corporation ("Tahera" or the "Company") (TSX:TAH) announces that it will not be able to meet the deadline of March 31, 2008 for the filing of its 2007 audited financial statements and related management discussion and analysis of financial condition ("MD&A").

As previously announced, Tahera has obtained an order from the Ontario Superior Court of Justice providing protection for Tahera under the Companies' Creditors Arrangement Act. Since the focus of Tahera is currently on conserving cash until it can secure financing and/or restructure its operations under the CCAA, it was deemed in the best interest of the Company and its shareholders to delay the preparation and filing of audited financial statements for the time being. Tahera does not know at this point in time when it would be in a position to prepare and file its financial statements and MD&A, as such filings will be driven by the outcome of its financing and restructuring efforts.

Pending the filing of its financial statements and MD&A, the Company intends to satisfy the alternative information guidelines recommended by Ontario Securities Commission ("OSC") Policy 57-603 and Canadian Securities Administrators ("CSA") Staff Notice 57-301. The Company will request from the Canadian securities regulators, that a management cease trade order related to the Company's securities be imposed against some or all persons who have been directors, officers or insiders of the Company since September 30, 2007, which cease trade order would generally not affect the ability of persons who have not been directors, officers or insiders of the Company since that date to trade in the Company's securities. If Tahera has not filed its audited financial statements for the 2007 year by May 31, 2008, the OSC may issue an Issuer Cease Trade Order as such term is defined in OSC Policy 57-603. In accordance with the alternative information guidelines of the OSC, Tahera intends to file throughout the period in which it is in default the same information as it is required to provide to its creditors at the time the information is provided to such creditors in the same manner as it would file a material change report under securities regulations.

The Company also anticipates having to postpone its annual meeting of shareholders until such time as audited annual financial statements for the 2007 financial year are prepared and available for mailing.

As part of the management cease trade order, the Company is required to issue regular updates. Within the coming weeks the Company intends to provide un-audited financial and operational results as they are available.

 

Corporate Update

 

In regard to matters related to corporate restructuring, the Company has retained the services of Blair Franklin Capital Partners Inc. Blair Franklin will be contacting potential interested parties in order to solicit expressions of interest leading to the sale of the company in whole or in part. Blair Franklin Capital Partners Inc. is a Toronto-based independent financial advisory firm.

 

Changes to the Board of Directors

 

Tahera Diamond Corporation ("Tahera" or the "Company") (TSX: TAH) announces today that Andrew Adams, Patrick Lavelle, Robert Dickson, and Gary Jones have resigned as directors of the Company. These changes are being made as a result of the Company's current corporate restructuring resulting in a significant alteration to the activities and responsibilities of the board. Remaining with the board are Jonathan Goodman, Richard Molyneux, Colin Benner, and Peter Gillin. The remaining board members will act in an advisory capacity to management as operations at the Jericho Mine are placed into care and maintenance and as corporate transactions are pursued.

The Company would like to thank Mr. Adams, Mr. Lavelle, Mr. Dickson, and Mr. Jones for their dedication, commitment, and significant contributions to the Company over the years.

 

FORWARD LOOKING STATEMENTS

 

Certain information regarding Tahera in this news release including management's assessment of future plans and operations and the timing thereof, may constitute forward-looking statements under applicable securities laws and may necessarily involve risks including, without limitation, risks associated with mineral exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity and diamond prices, currency fluctuations, imprecision of reserve and resource estimates, environmental risks, competition from other producers, inability to retain services, delays resulting from or inability to obtain required regulatory approvals, the ability to access sufficient capital and the uncertainty involved in Court proceedings and the implementation of a Plan under the CCAA. As a consequence, Tahera's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward looking statements will transpire or occur, or, if any of them do so, what benefits Tahera will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. Furthermore, the forward-looking statements contained in this news release are made as of the date this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

 

Tahera Diamond Corporation

R. Peter Gillin - Chairman and CEO