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Tahera Diamond Corp has signed an agreement with Tiffany & Co in which the luxury jeweler will buy or market all of the diamond production from Tahera��s Jericho Diamond Project and provide a CA$35 million ($28 million) loan facility to assist in the construction of the project. Under the deal, Tiffany will purchase a significant portion of the diamond production from the Jericho Project in the Northwest Territories for its own manufacturing requirements, and will sell the balance on behalf of Tahera on the international market. The agreement covers the entire life of the Jericho Project, estimated to be nine years. Valuation and price discovery mechanisms are in place to ensure Tahera will achieve competitive market prices for its diamonds. Tahera will pay no sales or other fees on the diamonds bought by Tiffany, and will share in the diamond manufacturing profits on a formula basis dependent on diamond size. Tiffany & Co will act as agent and will market for a fee the portion of the Jericho diamond production that it does not purchase. For Tahera, the deal mitigates many of the costs associated with marketing diamonds independently, including the development of a large marketing staff, and shipping, insurance, and security. Entering into a diamond purchase and marketing agreement with Tiffany will provide Tahera with the opportunity to realize superior values for its diamond output and enables the Company to focus on exploration and mine development. Elsa Peretti Full Heart earrings Post a comment in response: |
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