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Paragon to Delist Shares as Funding Talks Unlikely to Reach Conclusion in 2015
Dec 25, 2015 4:01 AM
By Rapaport News
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RAPAPORT... Paragon Diamonds reported it will be
delisted from London’s Alternative Investment Market (AIM) December 29 as
negotiations over the funding for its mining operations in Lesotho are “unlikely”
to reach a “conclusion” by year-end.
The company’s directors have been
“working tirelessly” to secure financing to bring its Lemphane
Kimberlite Pipe Project into production and to enable the miner to explore the
Mothae Kimberlite Resource, the company said in a statement December 24.
The board believes
it is unlikely any conclusion to the discussions in the form of transferred
funds will be achieved by end of the year, according to the statement. The
delay in funding has meant ongoing discussions with several nominated advisers
have not been successful, resulting in the group having to delist its shares.
The directors
believe the delisting will not materially affect investors’ share holdings. “The company retains the same prospects and
remains highly confident that the funding discussion will be concluded
successfully in the near future and will enhance the existing value of the company
when finalized,” the statement added.
“The board continues
to seek completion of the required funding as a matter of urgency. 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.”
Paragon’s deal to
acquire the Mothae mine from Lucara Diamond Corporation was terminated
earlier this month. The company said December 14 it would negotiate directly
with the Government of Lesotho, which controls final approval on any
transaction related to the mine’s development. The company’s shares were suspended in November.
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Tags:
Alternative Investment Market, financial, mining, Paragon Diamonds, Rapaport News, u.k.
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