Aerial view of Mothae project site which Lucara Diamonds Corp. will sell to Paragon
Aerial view of Mothae project site which Lucara Diamonds will no longer be selling to Paragon Diamonds

AIM-quoted diamond company Paragon Diamonds has received a notice of termination for its share purchase agreement with Lucara Diamonds for the acquisition of the Mothae kimberlite in Lesotho.

The company maintains the view that the development of Mothae is highly synergistic with its Lemphane kimberlite pipe project.  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 on-going process.  The conclusion of a financing package has taken longer than anticipated 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.

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