https://www.miningweekly.com

Paragon shares suspended as company warns of financial uncertainties

16th November 2015

By: Creamer Media Reporter

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Aim-listed Paragon Diamonds warned of the material uncertainty over the financial position of the company until a funding package was secured.

The company, which on Monday requested the LSE temporarily suspend trading in its shares until it could clarify its financial position, said it had limited working capital.
 
“The directors of Paragon remain in negotiations with possible funding providers to secure finance to complete the acquisition of Mothae, provide development funding for Lemphane and to repay short-term debts, including the £500 000 loan facility, which is due on November 18,” Paragon stated.

The company had entered into an agreement to buy TSX-listed Lucara Diamond Corporation’s 75% stake in the Mothae mine, in Lesotho, for $8.5-million. The Lesotho government has approved the deal, but Paragon had yet to complete financing for the acquisition.

It added that if the loan was not repaid within five business days of the due date, it would constitute an event of default and the lender being within its rights to request immediate repayment of the loan at 120% of the outstanding amount.

Alternatively the lender would have the option to convert the outstanding loan into ordinary shares of the company at the lower of 5.22p, being the average share price on  June 17 when the loan was issued, and 90% of the prevailing market price on the day that the loan was converted.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 
ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

PGMs and green hydrogen make headlines
PGMs and green hydrogen make headlines
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.139 0.177s - 107pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: