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

24 December 2015

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

Corporate Update

Paragon Diamonds Limited, the AIM quoted diamond development company with diamond mining interests in Lesotho, announces an update on activity and corporate matters.

The Directors of the Company have been working tirelessly to finalise the required funding to bring its Lemphane Kimberlite Pipe Project (‘Lemphane’) in Lesotho into production and to enable continued negotiation regarding acquiring a licence to explore the Mothae Kimberlite Resource (’Mothae’) also in Lesotho.

The Board now believes that it is unlikely that any conclusion to the current funding discussion in the form of transferred funds will be achieved by the year end.  The delay in funding has meant that on-going discussions with several Nominated Advisors have not been successful, which means the Company’s shares will be delisted at 7 am on the 29 December 2015.

The Directors are of the opinion that the value of investors’ share holdings will not be materially affected by the event of a delisting.  The Company retains the same prospects and remain highly confident that the funding discussion will be concluded successfully in the near future and will enhance the existing value of the Company 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.


For further information please visit 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


Paragon Diamonds has a pipeline of projects in Lesotho, Botswana and Zambia, the most advanced of which is its Lemphane Kimberlite Pipe Project in Lesotho, located close to the world class Letšeng mine, Lesotho’s largest diamond mine. Lemphane is the last known kimberlite to be developed in Lesotho.  Among the stones recovered in the Company’s 2013 bulk sampling programme were several large high value stones of up 8.9 carats in size and individual diamond values in excess of US$2,400/ct have been achieved, demonstrating the potential for Lemphane to hold large and valuable diamonds.  The first of a two stage production programme is currently expected to commence in 2016 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.

Stage 1 production will cover a two year period during which approximately 1 Mt of kimberlite will be mined and processed out of the currently estimated 48.6Mt of kimberlite (to 350m depth) at the site, using a 75 tonne per hour processing plant.  The Company is targeting 20,000 carats during Stage 1 production with an estimated minimum value of US$930 per carat that is expected to generate revenues in excess of US$9m per annum.  Cash flow will be reinvested to further develop Lemphane and complete a bankable feasibility study, a 3D geological model and a substantial inferred resource ahead of commencing the Stage 2 production phase.  Stage 2 will see production ramped up to 3Mt/year with peak production expected to hit 65,000 carats per year of high value diamonds.

It is the intention of the Company to become a fully integrated diamond company maximising the margins gained from being exposed from the mining to selling of diamonds.

Copyright r 23 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.