TIDMPRG

RNS Number : 7875F

Paragon Diamonds Limited

16 November 2015

16 November 2015

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

Paragon Diamonds Limited

('Paragon' or the 'Company')

Temporary Suspension

The Directors of Paragon Diamonds Limited, the AIM quoted diamond development company, announces it has requested a temporary suspension in the trading of its shares with immediate effect pending clarification of financial position.

Paragon currently has limited working capital and until a funding package has been secured there is a material uncertainty over the financial position of the Company.

The Directors of Paragon remain in negotiations with possible funding providers to secure finance in order to complete the acquisition of Mothae, provide development funding for Lemphane and to repay short-term debts including the GBP500,000 loan facility which is due on 18 November 2015. If this loan is not repaid within 5 business days of the due date this will constitute an event of default and the lender may request immediate repayment of the loan at 120% of the outstanding amount. Alternatively the lender has the option to convert the outstanding loan into ordinary shares of the Company at the lower of 5.22p, being the average share price on 17 June 2015 when the loan was issued, and 90% of the prevailing market price on the day that the loan is converted.

No assurances can be given regarding the terms and the timing of the funding arrangements that the Directors may secure. The Directors therefore have requested the suspension of trading in the Company's shares until such time as the Company's financial position has been clarified.

Further announcements will be made as soon as practicable.

**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 
                          Northland Capital Partners 
David Hignell              Limited 
 Gerry Beaney              (Nominated Adviser)         +44 (0) 20 7382 1100 
                          Northland Capital Partners 
John Howes                 Limited 
 Mark Treharne             (Sales and broking)         +44 (0) 20 7382 1100 
Felicity Winkles          St Brides Partners Limited   +44 (0) 20 7236 1177 
Frank Buhagiar            St Brides Partners Limited   +44 (0) 20 7236 1177

This information is provided by RNS

The company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

November 16, 2015 02:47 ET (07:47 GMT)

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