2004

Tiffany Has New Sourcing Agreement With Canadian Mine

Nov. 2004

Tiffany, which already struck a deal to market stones from Aber Mining in Canada, co-owner of Diavik, is taking another stab at the diamond mining business. It just signed a deal to buy stones from Tahera, owner of the soon to open Jericho mine in Nunavit, Canada.

Under the deal, Tiffany will use a significant part of the production for its own jewelry collections and market the balance on the open market.

Tiffany will also provide Tahera with a five-year $28 million loan facility to help finance the construction of the project. It will be secured by the Jericho mine.

Tahera plans to finance the balance of the Jericho costs by selling equity. The Jericho mine is set to go into commercial production by 2006. The agreement extends over the entire life of the project, which Tahera estimates is nine years.