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RAPAPORT... Lucara Diamond Corp. signed a memorandum of understanding with Paragon Diamonds Ltd. to sell its 75 percent stake in the Mothae diamond project based in Lesotho. The sale is subject to the approval of the government of Lesotho. Paragon agreed to pay Lucara $8.5 million in cash upon closing the acquisition and plans to polish a selection of diamonds from the property. Lucara will receive 5 percent of the profits derived from the sale of the polished stones. Lucara will also receive a payment equal to 5 percent of the profits achieved from the sale of rough diamonds that are not selected for polishing.
William Lamb, Lucara's president and CEO, said, "We are pleased to announce that we have agreed to terms with Paragon on the sale of Mothae. The transaction returns cash to Lucara and allows us to participate in future sales of diamonds from Mothae. We are working with the government of Lesotho and Paragon to finalize the transaction and to transition ownership of the Mothae project to Paragon in an efficient manner."
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