Paragon Diamonds Limited Acquires remaining interest in IDC
Paragon Diamonds, the African-focused diamond explorer and developer, is pleased to announce that it has acquired the remaining 1.5% interest in International Diamond Consultants ("IDC") from Obtala Resources Limited.
IDC holds interests in the Group's Lemphane and Motete mining exploration projects in Lesotho, the KapLamp lamproite project in Zambia and the Kabale licence, a diamond kimberlite exploration project both in Zambia. Paragon originally purchased 44.3% of IDC in December 2010 and subsequently increased its interest to 98.5% in May 2011.
Details of the transaction
Paragon has acquired a further 1.5% interest in IDC from Obtala Resources Limited, bringing the Group's interest to 100%. The 600,000 shares have been acquired at a price of $0.88 per share. The consideration of £330,000 has been satisfied by way of issuing 970,588 new ordinary shares in the Company to Obtala Resources Limited.
The completion of this further acquisition, results in the Company holding the entire share capital of IDC.
A total of 970,588 new ordinary shares in the Company have been issued at a price of 34 pence per share representing consideration for the purchase.
The value per share offered to Obtala for its shareholding in IDC is the same as offered to the previous vendors of IDC shares.
Related Party Transaction
Obtala Resources is a related party due to its shareholding of 45% of Paragon and Francesco Scolaro is the Executive Chairman of both Obtala and Paragon.
Issue of Equity
The new shares will rank pari passu with all existing ordinary shares, and dealings on AIM are expected to commence in the new ordinary shares on 1 May 2012.
Following the issue of ordinary shares in relation to the acquisition, the Company's issued share capital now consists of 195,095,917 ordinary shares of 1p each.
Paragon Chairman, Francesco Scolaro commented:
"I am pleased that Paragon now holds 100% of IDC, with the positive results now coming from Lesotho I believe this will generate further upside for PRG shareholders . The value per share paid to Obtala for its stake in IDC is the same as that offered to the previous vendors of IDC, which I believe, in light of the current good news flowing out of Lesotho, represents good value for the shareholders of Paragon. I look forward to reporting further on the current developments in Lesotho in the coming months."