The mining industry in Lesotho is still in its infancy, writes Mining Weekly, but is developing and has great potential, says Lesotho Mining Minister Lebohang Thotanyana.
Paragon Diamonds' shares will likely be delisted since a conclusion about financing talks for operations in Lesotho is unlikely before the end of the year. The company said this means its shares will be delisted at 7am on Dec. 29 from the London Stock Exchange's Alternative Investment Market. Paragon said its directors had been working to finalize the required funding to bring its Lemphane kimberlite pipe project in Lesotho into production and to enable continued negotiation regarding acquiring a license to explore the Mothae kimberlite resource which is also in Lesotho.
Paragon Diamonds Limited's has been attempting to acquire a majority stake in Lucara/Lesotho's Mothae mining project since May 2015, and the Lesotho government approved the acquisition back in August. Paragon agreed to pay Lucara Diamond Corp. $8.5 million for its 75% stake in Mothae, and Lucara was to receive 5% of the profits from the sale of polished diamonds from Mothae and 5% of the profits achieved from the sale of rough diamonds not selected for polishing.
Mining firm Paragon Diamonds suspended trading on Monday ahead of a statement on its financial position. The company is committed to acquiring a 75-percent stake in the Mothae project in Lesotho from Canada’s Lucara Diamond, but said it has limited working capital. Until a funding deal is created, Paragon said there is a “material uncertainty” regarding its financial position.
Paragon Diamonds, which has obtained formal approval to complete the acquisition of a 75% interest in, and operatorship of, the Mothae Kimberlite Resource in Lesotho from Lucara Diamond Corporation, has received extremely positive results from two independent studies. According to Paragon's announcement, "The conclusions exceed management’s initial expectations...