Lesotho – AIM-listed diamond developer Paragon Diamonds has taken another step forward in its acquisition of Lucara Diamonds’ Mothae kimberlite resource in Lesotho – having officially entered into a legally binding share purchase agreement.

Mothae is located close to Paragon’s nearby Lemphane kimberlite pipe project in an area of Lesotho known for producing large high value diamonds.

In June Paragon Diamonds announced it had raised £500 000 of unsecured debt financing for short-term working capital requirements while it progresses its acquisition of the Mothae diamond project in Lesotho from Lucara Diamonds.

The acquisition remains subject to approval from the Government of Lesotho and completion of funding, as previously announced.

Paragon’s MD 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.

Top Stories:

South Africa’s small quarries overregulated and unsustainable

African Development Bank approves natural resources centre strategy

Amplats expects spike in half year earnings