JOHANNESBURG (miningweekly.com) – Aim-listed diamond development company Paragon Diamonds has entered into a legally binding share purchase agreement with Canada's Lucara Diamond Corp for the $8.5-million buy-out of its interest in the Lesotho-based Mothae kimberlite resource.
Paragon would acquire Lucara's 75% stake in the Mothae project, with the Lesotho government owning the other 25% interest.
Paragon was now awaiting government approval for the deal, which also remained subject to the completion of funding, after the group provided extensive details of its ability to fund the long-term development of the Mothae mine, said Paragon MD Dr Stephen Grimmer.
The Mothae project, which was adjacent to Gem Diamonds’ Letseng mine, had an indicated resource of one-million carats and an inferred resource valuation of $1-billion.