Tahera Diamond plan of arrangement approved by court, unitholders

By Caroline Salls

Pittsburgh, June 4 - Tahera Diamond Corp. said it has completed its Canada Business Corporations Act plan of arrangement with Ag Growth Income Fund, according to a company news release.

The company said the plan was approved at a specialty meeting of holders of trust units and exchangeable limited partnership units of AGX Holdings LP on Wednesday, with more than 96% of the unitholders voting in favor of the plan.

The plan of arrangement was also approved on Wednesday by the Ontario Superior Court of Justice.

Under the plan, Tahera wholly owned subsidiary Benachee Resources Inc., which changed its name to Ag Growth International Inc., transferred all of its assets and debt to a new subsidiary, which will now be called Benachee Resources Inc.

In addition, Tahera received $13 million in cash, $4 million of common shares and $4 million of convertible preferred shares of Ag Growth International, which was subsequently paid to senior secured creditor Caz Petroleum Inc.

The company said Caz has provided an up to $5 million debtor-in-possession credit facility to finance a potential restart of Tahera's Jericho Mine.

Based in Toronto, Tahera is a diamond exploration company.

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