Tahera Diamond Corp. has been given an extension of its protection from creditors until Dec. 12, but said Monday it will likely be forced to cease operation.
Tahera, which suspended mining at its Jericho site in Nunavut earlier this year to conserve cash, received the latest extension of its stay under the Companies' Creditors Arrangement Act. But it said it's been unable to find alternative financing or a purchaser for its assets.
The company, which entered CCAA protection last January, had previously indicated it had a deal to be bought by a Vancouver-based group.
"In the absence of additional funding, the company currently estimates that its cash reserves will be exhausted at a point in time approximately between Dec. 15, 2008, and Dec. 22, 2008, at which time the company will be forced to cease operating," Tahera said.
"It is anticipated that there will be no value for holders of Tahera's common shares," it added.
Shares of Tahera closed unchanged at half a cent in trading on the TSX. They traded as high as 21 cents during the past year and peaked at $4 in early 2006.