24th Feb 2014 11:14
LONDON (Alliance News) - Paragon Diamonds Ltd Monday said its 85% owned subsidiary Meso Diamonds has now finalised the terms and conditions of the Mining Lease Agreement for the mining of the Lemphane Kimberlite Pipe in Lesotho.
The diamond development and production company said the Government of Lesotho has now granted an initial ten year mining lease, renewable for three consecutive ten-year periods subject to the terms of Lesotho's Mines and Minerals Act of 2005.
The company added that the new deal allows it to initiate preparations for, and commence its stage 1 production at Lemphane. Paragon added that the two stage production programme is targeting the mining of 500,000 tonnes per year to recover an anticipated 10,000 carats per year at a minimum average value of USD750 per carat.
Paragon said stage 1 production is intended to produce a maiden inferred resource at Lemphane and a definitive feasibility study towards stage 2 mining.
Obtala Resources Ltd has a 30.61% shareholding in Paragon Diamonds.
Paragon Diamonds shares were up 2.3% to 3.00 pence while Obtala shares were down 2.3% to 6.35 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Obtala Resources LtdPRG.L