LONDON (Alliance News) - Paragon Diamonds Ltd said Thursday that, whilst it has been working to finalise funding for its operations in Lesotho, the delay in funding has meant that it has not been successful in its discussions with nominated advisers, and as a result its shares will be delisted next Tuesday.
Paragon Diamonds' broker and nominated adviser Northland Capital Partners Ltd resigned in November, and under AIM rules, the company was required to appoint a replacement nomad within a month to avoid its shares being delisted.
The company has been working to finalise funding to bring its its Lemphane kimberlite pipe project in Lesotho into production, and to enable the continued negotiation regarding acquiring a licence to explore the Mothae Kimberlite Resource, also in Lesotho.
The directors of Paragon Diamonds said they are of the opinion that the value of investors' share holdings will not be "materially affected" in the event of a delisting. It remains confident its current funding discussion will be concluded in the near future and will enhance the company's value when finalised.
"The board continue to seek completion of the required funding as a matter of urgency and will update shareholders regularly via the company's website, which we encourage shareholders to monitor closely. The company will continue to act in the best interests of all shareholders and, assuming the required funding is obtained, work towards a new listing on AIM or the Main Market as soon as practicable in 2016," Paragon Diamonds said in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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