Owners of Nunavut's first and only diamond mine nowhere to be found

Shear Diamonds (TSX VENTURE:SRM), the company that bought Canada’s Jericho mine site in 2010 after the previous owners went bankrupt, have vanished off the face of the earth.

CBC is reporting that the firm’s web site is gone and the phones have been disconnected:

It happened quickly last summer, on Labour Day weekend, when Shear realized it was in financial trouble.

Within 48 hours, Shear had done some basic clean-up at the Jericho site, and all its staff members were flown out.

Regulators found out about it a few days later.

The troubled Canadian junior decided to put on hold its bullish plan to revitalize Nunavut’s Jericho diamond mine, which last functioned from 2006 to 2008, only months after it restarted operations. At the time, it blamed international prices for its decision.

On Nov. 15, Shear revealed it was facing new challenges, including the loss of top executives and a debt of about $3 million to the Belgian diamond firm Taché.

In the news release, Shear hinted it was looking for a buyer and said it wanted to enter into “a transaction, whether financing, joint venture, sale or otherwise that will either allow Shear to advance its Jericho project or to otherwise realize value for Shear’s stakeholders.”

The Jericho mine (pictured) is Canada’s third and Nunavut’s first diamond mine.


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