Tahera Diamond Corp (TAH.TO: Quote) said on Wednesday it will try to raise up to C$40 million ($32 million) in an attempt to either reopen its Jericho diamond mine in Canada's Arctic or sell the asset.
The company shut the money-losing mine last year and left the property to be taken over by the Canadian government after Tahera ran out of funds and failed to find a buyer.
Tahera, which has been operating under bankruptcy protection, said in a statement it had entered into an agreement with Cormark Securities for potential equity or debt financing to raise between C$30 million and C$40 million.
It said the funds would be used to fund the re-commencement of commercial mining operations at the Jericho Diamond Mine, or the direct or indirect sale or disposition of the mine.
The company's shares, which were once worth more than C$4, haven't traded since February and were last valued at half a Canadian cent.
The mine opened in 2006 in the northern territory of Nunavut, but bled money from the start due to high oil prices, the soaring Canadian dollar and resupply problems.
($1=$1.24 Canadian) (Reporting by Cameron French; editing by Rob Wilson)
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