JOHANNESBURG (miningweekly.com) – Aim-listed Paragon Diamonds has received a notice of termination for its share purchase agreement with the Lucara Diamond Corporation with regards to the acquisition of the Mothae kimberlite resource, in Lesotho.
Paragon said on Tuesday that it maintained the view that the development of Mothae was highly synergistic with its Lemphane kimberlite pipe project and it would, accordingly, negotiate directly with the government of Lesotho, which controlled the definitive approval on any transaction in respect of developing the resource.
Finalising funding for the company to implement its development strategy remained an ongoing process and the conclusion of a financing package had taken longer than expected.
This was on account of the board’s reluctance to materially discount the potential value of the company and dilute existing shareholders, as well as continued administrative delays experienced by the expected investor.
“It is the board’s belief that the termination of the agreement with Lucara will not have material impact on the terms of any such funding obtained from the afore-referenced investor,” said the group.