Paragon Diamonds to Buy Majority Stake in Lesotho Project

Mining and Exploration
07/05/2015 08:57

UK-based diamond development company Paragon Diamonds Ltd. has signed a memorandum of understanding with Canadian mining company Lucara Diamond Corp. to acquire a 75% interest, with an acquisition cost of USD 8.5m, and operate the defined Mothae Kimberlite Resource, the company said. The Mothae Kimberlite Resource is located 5 km from the Letseng le Terai diamond mine in Lesotho. The acquisition is subject to approval from the government of Lesotho. Previously Paragon Diamonds announced its plans to provide ‘first generation economies’ billionaires in Russia, Ukraine, India, Middle East with investment grade diamonds as “easily accessible, highly portable and to government and tax authorities invisible store of value”, advantages no other ‘hard asset’ is able to offer.