TORONTO, ONTARIO--(Marketwire - Dec. 8, 2011) - Shear Diamonds Ltd. (TSX VENTURE:SRM) has today signed agreements with Taché Company N.V. ("Taché") securing debt financing and forming a strategic alliance under which Taché will purchase the diamond production from Shear's Jericho diamond project in Nunavut. The alliance establishes a mutually beneficial relationship encompassing sales of both rough and polished diamonds from the Jericho mine. Shear will participate in final net profits from Taché's sales of the Jericho diamonds either as rough or polished stones.
The debt financing to be provided by Taché includes a US$2 million term loan repayable in 12 equal monthly installments once Shear begins to receive proceeds of sales of diamonds from the existing recovery concentrate stockpiles at Jericho, and a US$3 million revolving credit facility which can be drawn against once Shear has begun shipping diamonds from the existing recovery stockpiles.
"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 Taché. Taché'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 Taché," commented CEO, Julie Lassonde.
"The companies believe that this is a new paradigm for diamond miners and diamontaires which substantially benefits both groups," says Lassonde.
"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 share our vision and our values" commented Jacky Taché, CEO of Taché.
On behalf of the Board of SHEAR DIAMONDS LTD.
Julie Lassonde, CEO & Executive Chairman