PRG Paragon Diamnd

 
TIDMPRG 
 
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. 
 
                                   **ENDS** 
 
For further information please visit www.paragondiamonds.com or contact: 
 
Philip Falzon Sant      Paragon Diamonds              +44 (0) 20 7182 1920 
Manduca                 Limited 
 
Simon Retter            Paragon Diamonds              +44 (0) 20 7182 1920 
                        Limited 
 
Felicity Winkles        St Brides Partners Limited    +44 (0) 20 7236 1177 
 
Frank Buhagiar          St Brides Partners Limited    +44 (0) 20 7236 1177 
 
Notes 
 
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 Letseng 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 Letseng. 
 
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. 
 
 
 
END 
 

(END) Dow Jones Newswires

December 24, 2015 02:00 ET (07:00 GMT)

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