14 Jul 2015 07:00
PARAGON DIAMONDS LTD - Mothae Acquisition UpdatePARAGON DIAMONDS LTD - Mothae Acquisition Update
PR Newswire
London, July 13
Paragon Diamonds Limited / Index: AIM / Epic: PRG / Sector: Resources
14 July 2015
Paragon Diamonds Limited
(‘Paragon’ or the ‘Company’)
Mothae Acquisition – Update
Paragon Diamonds Limited, the AIM quoted diamond development company, is pleased to announce that, further to the announcement of 5 May 2015, the Company has now entered into a legally binding share purchase agreement with Lucara Diamond Corporation (“Lucara”) with regards to the acquisition of the Mothae Kimberlite Resource (“Mothae”) (the “Acquisition”). Mothae is located close to Paragon’s nearby Lemphane Kimberlite Pipe Project in an area of Lesotho known for producing large high value diamonds.
The Acquisition remains subject to approval from the Government of Lesotho and completion of funding, as previously announced.
Paragon’s Managing Director Dr Stephen Grimmer, who is based in Lesotho, has provided extensive details of the Company's ability to fund the long term development of the Mothae mine to the Minister and the Company is now awaiting formal Government approval for the Acquisition. Further announcements regarding the Acquisition will be made at that time.
**ENDS**
For further information please visit www.paragondiamonds.com or contact:
| Philip Falzon Sant Manduca | Paragon Diamonds Limited | +44 (0) 20 7182 1920 |
| Simon Retter | Paragon Diamonds Limited | +44 (0) 20 7182 1920 |
| David Hignell Gerry Beaney | Northland Capital Partners Limited (Nominated Adviser) | +44 (0) 20 7382 1100 |
| John Howes Mark Treharne | Northland Capital Partners Limited (Sales and broking) | +44 (0) 20 7382 1100 |
| Felicity Winkles | St Brides Partners Limited | +44 (0) 20 7236 1177 |
| Frank Buhagiar | St Brides Partners Limited | +44 (0) 20 7236 1177 |
Notes
Paragon Diamonds, in addition to the above Acquisition, has a project in Lesotho, the Lemphane Kimberlite Pipe Project, located close to the world class Letšeng mine, Lesotho’s largest diamond mine. Lemphane is the last known kimberlite to be developed in Lesotho. The first of a two stage production programme is expected to commence in 2015 which will further define the resource at Lemphane. As increased tonnages of kimberlite are processed the proportion of larger diamonds recovered will improve, increasing the average value of diamonds recovered at the project, as was the case at Letšeng.
In accordance with the AIM Rules for Companies, the information in this announcement has been reviewed by Stephen Grimmer PhD., Msc., a qualified geologist with over 25 years diamond exploration experience.