Paragon Diamonds to acquire, cancel Lanstead shares

Paragon Diamonds is set to acquire 63 million ordinary shares at 3 pence each in an off market purchase from Lanstead Capital.
Titanium Capital, a private equity investment company managed by Paragon’s chairperson, Philip Falzon Sant Manduca, was providing a loan of about $2.1 million to complete the proposed transactions.
Paragon would cancel the shares in line with management’s focus on generating significant value for shareholders. Once the deal was closed, Lanstead would no longer hold an interest in Paragon.
“The acquisition of Lanstead’s interest highlights management’s commitment to building a vertically integrated diamond company, while ensuring the issued share capital is kept to a minimum so that shareholders capture as much of the value generated via positive share price performance,” said Manduca.
Paragon was preparing for its first stage of production at the Lemphane kimberlite diamond project in Lesotho.
The first stage production was expected to commence in the first quarter of 2015 and would see 1 million tonnes of ore being mined.

Mathew Nyaungwa, Editor in Chief of the African Bureau from Harare, Rough&Polished