Paragon Diamonds Ltd Update on Mothae

 
TIDMPRG 
 
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      Paragon Diamonds                [phone] 
Manduca                 Limited 
 
Simon Retter            Paragon Diamonds                [phone] 
                        Limited 
 
Felicity Winkles        St Brides Partners Limited      [phone] 
 
Frank Buhagiar          St Brides Partners Limited      [phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

December 14, 2015 12:00 ET (17:00 GMT)