Shear Diamonds will sell rough and polished diamond production from Nunavut’s Jericho mine to Belgium-based Taché Company.
A new deal between the two will also see Taché provide debt financing that includes a $2-million US term loan repayable in 12 equal monthly installments once Shear starts receiving proceeds from the sale of existing Jericho stockpiles. A $3-million US revolving credit facility is also part of the agreement and comes into effect once Shear has begun shipping stockpiled diamonds.
The company will also participate in final net profits from Taché’s sales of Jericho diamonds either as rough or polished stones.
“This alliance is significant for Shear in both the short and long term,” said Shear chief executive officer (CEO) Julie Lassonde. “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 Taché. [Its] 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 Taché. The companies believe this is a new paradigm for diamond miners and diamantaires, which substantially benefits both groups.”
Taché CEO Jacky Taché said the deal fits well with the company’s strategic plans.
“We at Taché are always looking for long-term relationships with our suppliers and customers alike. This agreement provides an exciting new strategic alliance for Taché, whilst respecting our need to partner with a group that shares our vision and our values.”
