LONDON (Alliance News) - Paragon Diamonds Ltd shares rose in early trade on Friday after the company said it is making progress on its Lemphane kimberlite pipe project in Lesotho and has raised new funds to back the acquisition of of a prospective diamond mine.
Paragon said stage one production at Lemphane remains on track to start in the second quarter of 2015. It said there is potential to significant cut future operating costs at Lemphane with discussions currently ongoing with contracts on the electrification of the mining operations.
Elsewhere, the company said it has raised GBP130,000 via a share placing to back the acquisition of a prospective diamond mine project in Africa. It did not provide any details on which country the mine is based in.
It has raised the funding via the placement of 2.4 million shares at 5.5 pence per share.
Paragon shares were up 9.8% to 6.14 pence on Friday, one of the best performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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