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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.
Tags: Alternative Investment Market, financial, mining, Paragon Diamonds, Rapaport News, u.k.
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