Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Paragon Diamonds (LON:PRG) said Monday it conditionally increased its interest in the Lemphane Kimberlite project in Lesotho, owned by Meso Diamonds, from 85% to 100%.
Stage one of a two-stage production program at Lemphane targets the mining of 500,000 tonnes per annum to recover an anticipated circa 10,000 carats per year.
The acquisition is conditional on admission of the new ordinary shares to AIM, expected to become effective on or around May 19, 2014.
Paragon will now hold 80% of the equity in the project, together with the Government of Lesotho holding 20%.
The company first undertook scoping study to design an operational model for the development of Lemphane in January.
There have been significant diamond discoveries in Lesotho in the past, a landlocked country completely surrounded by South Africa, including a rare 12.47-carat blue diamond recovered by Gem Diamonds’ (LON:GEMD) last year.
