JOHANNESBURG (miningweekly.com) – Africa-focused Paragon Diamonds announced on Thursday that it had acquired 44,3% of the issued share capital of International Diamond Consultants (IDC) from sub-Saharan African mining group Grandinex International.
Paragon acquired 18-million shares at a value of 50c a share, making it the largest shareholder in IDC.
The acquisition increased Paragon's interest in the Lemphane kimberlite project in Lesotho and gave it a significant interest in the Kabale licence, a diamond kimberlite exploration project in Zambia.
MD Stephen Grimmer said on Thursday that the acquisition would give Paragon significant potential to increase shareholder value from the anticipated results of bulk sampling, with phase one of the initial exploration and sampling work firmly under way at Lemphane.
Paragon has also entered into a joint-venture agreement with IDC's subsidiary, Meso Diamonds, which holds the Lemphane prospecting licence covering a known kimberlite pipe in the diamondiferous region of Lesotho.
Johannesburg-based independent geological consultancy firm the MSA Group in October reported that the Lemphane pipe might contain some 30-million tons of kimberlite to a depth of 200 m from the surface.
The Kabale licence in Zambia was also deemed prospective for kimberlites and initial evaluation work is under way on this licence.
All activities carried out by IDC are in the exploration and analysis stages. As such, the group has not produced any profits to date.
Meanwhile, Paragon aimed to satisfy a consideration of £5,7-million by issuing 23 397 894 new ordinary shares at a market price of 24,5p a share.
Following the issue of the new ordinary shares, the company's issued share capital now consists of 130 182 819 ordinary shares of 1p a share.