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UK’s Paragon Shares Suspended Amid Financial ‘Uncertainty’
Nov 17, 2015 8:09 AM
By Rapaport News
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RAPAPORT... Paragon Diamonds Limited, listed on the UK’s Alternative
Investment Market, has had trading in its shares temporarily suspended amid
“material uncertainty” over its financial position, the London Stock Exchange confirmed in a statement November 16.
The miner is negotiating new financing arrangements to
repay a $760,130 (GBP 500,000) loan facility due November 18, the company said in a statement the same day.
Failure to repay within five business days of the due date may result in
Paragon being required to pay back 120% of the outstanding amount immediately. The lender has the option to convert its debt into shares.
Fresh financing would also go toward repaying other
short-term debts, completing an $8.5 million acquisition
of the Mothae kimberlite mine in Lesotho from
Lucara Diamond Corporation and providing development funding for its Lemphane
project, also in Lesotho.
Paragon requested the suspension, the company said. It said it can give “no assurances” over the terms and timing of new
funding arrangements and its directors asked that the shares be suspended until
the company’s financial situation is clarified.
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Tags:
aim, Alternative Investment Market, financial, loans, mining, Paragon Diamonds Limited, Rapaport News, shares
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