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Lesotho Approves Paragon Diamonds's Acquisition of Mothae Mine
Aug 9, 2015 9:07 AM
By Ronen Shnidman
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RAPAPORT... Lesotho has approved Paragon Diamonds Limited's acquisition of a majority stake in the Mothae mining project, the mining explorer announced on Friday.
The company agreed to pay Lucara Diamond Corp. $8.5 million for its 75 percent stake in Mothae, subject to government approval and a successful closing of the acquisition. In addition, Lucara will receive 5 percent of the profits derived from the sale of polished diamonds from Mothae and 5 percent of the profits achieved from the sale of rough diamonds that are not selected for polishing.
Mothae is still 25 percent-owned by the government of Lesotho. The mining project is located in the same cluster of diamond-bearing kimberlites as Paragon’s Lemphane mine project and Gem Diamonds’ Letšeng mine.
“The process to obtain formal approval to acquire Mothae took longer than all parties anticipated, having received verbal approval from the Minister at my meeting with him on the June 22, 2015,” said Philip Falzon Sant Manduca, Paragon’s executive chairman. “In any event, with the approval now to hand, we can now progress the acquisition and development of Mothae.”
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Tags:
Lemphane, lucara, Manduca, Mothae, Paragon Diamonds, Ronen Shnidman
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