Paragon Diamonds Limited / Index: AIM / Epic: PRG / Sector: Resources

 14 December 2015

Paragon Diamonds Limited (‘Paragon’ or the ‘Company’)

Update on Mothae

Paragon Diamonds Limited, the AIM quoted diamond development company, has received a notice of termination for its share purchase agreement with Lucara Diamond Corporation (‘Lucara’) with regards to the acquisition (announced on 14 July 2015), of the Mothae Kimberlite Resource (’Mothae’).  The Company maintains the view that the development of Mothae is highly synergistic with its Lemphane Kimberlite Pipe Project (‘Lemphane’).  Accordingly, it will negotiate directly with the Government of Lesotho, which controls the definitive approval on any transaction in respect of developing Mothae, and will update the market accordingly on progress made.

Finalising funding for the Company to implement its development strategy remains an ongoing process.  The conclusion of a financing package has taken longer than anticipated.  This is on account of the Board’s reluctance to materially discount the potential value of the Company and dilute existing shareholders, as well as continued administrative delays experienced by the expected investor.  It is the Board’s belief that the termination of the agreement with Lucara will not have material impact on the terms of any such funding obtained from the afore-referenced investor.

**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
Felicity Winkles St Brides Partners Limited +44 (0) 20 7236 1177
Frank Buhagiar St Brides Partners Limited +44 (0) 20 7236 1177

Copyright r 14 PR Newswire

Paragon Diamond (LSE:PRG)
Historical Stock Chart
From May 2020 to Jun 2020 Click Here for more Paragon Diamond Charts.
Paragon Diamond (LSE:PRG)
Historical Stock Chart
From Jun 2019 to Jun 2020 Click Here for more Paragon Diamond Charts.