Paragon Diamond’s deal to acquire Mothae mine with Lucara concluded
Paragon Diamond limited to deal with Lucara Diamond Corp. to acquire the Mothae Kimberlite Resource in Lesotho has been dismissed. Lucara stated that they were effectuating with the government of Lesotho along with the third party to affect the transfer of its Mothae holding to a party who will swiftly build up the asset.
Paragon Diamonds delineated its agreement with Lucara Diamond Corporation to purchase the Mothae Kimberlite Resource in Lesotho had been ended. Mothae is “highly interactive” with Paragon’s Lemphane Kimberlite Pipe Project, too in Lesotho, the company divulged in a statement stated on December 14 in reaction to the termination notice. The miner “will negotiate directly with the Government of Lesotho, which will be in charge of the unequivocal approval of any dealings concerning the developing Mothae, and will brief the market accordingly on progress made,” it said in the instruction. Lucara stated that they were effectuating with the government of Lesotho along with the third party to affect the transfer of its Mothae holding to a party who will swiftly build up the asset. Concluding backing and funding for Paragon to implement its growth strategy “remains an ongoing procedure,” the instruction read. A reason given for the board’s disinclination to materially discount the possible value of the corporation and dilute existing shareholders is because of doubt about its fiscal position. Further, the closing of a financing package has taken longer than expected. The board of directors of the company too believes “the cessation of the agreement with Lucara will not deliver a material impact on the terms of any such funding.”