JOHANNESBURG (miningweekly.com) – Diamond development and production company Paragon Diamonds on Thursday announced that Titanium Capital Investments had exercised its call option to buy 60-million ordinary shares in Paragon from Aim-listed Obtala Resources at 3.25p a share.
Paragon chairperson Philip Falzon Sant Manduca said the additional £1.95-million investment in Paragon shares by Titanium reflected a number of recent positive developments within the company and at its flagship Lemphane kimberlite project, in Lesotho.
"I believe Paragon remains significantly undervalued as a company and I expect an increasing number of global investors to come to the same conclusion as me shortly, as the good news at Paragon is expected to continue in the near future, as we advance Lemphane towards Stage 1 production in the first quarter of 2015,” he added.
The call option would be settled in two tranches with payment for and the transfer of 24-million shares to occur on the earliest practicable settlement date, with a delayed settlement extended to the remaining 36-million shares until March next year.
The transfer of the second-tranche shares was conditional upon Paragon successfully completing the buyback of 63-million of its ordinary shares from Lanstead Capital.
Should Paragon not complete this buyback by December 11, the settlement date for the final tranche of the option would be set as soon as practicable after this date.