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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.
Tags: aim, Alternative Investment Market, financial, loans, mining, Paragon Diamonds Limited, Rapaport News, shares
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