Pan-African miner, Paragon Diamonds, has increased its interest in the Lemphane Kimberlite project in Lesotho to 100% after acquiring Meso Diamonds remaining 15% interest in the project.

Meso Diamonds, a subsidiary of Paragon Diamonds, was granted a mining licence over the Lemphane project.

Paragon’s 85% shareholding interest in the subsidiary amounting to $26.43 million, as at 31 December 2013.

The Lemphane project is one of two diamondiferous-kimberlite projects, which part of Paragon’s core activities in the Sub-Saharan African country.

Acquisition requisite

The consideration of the acquisition was the issuing of about 35.5 million of the new ordinary Paragon Diamond shares or 12% of the ordinary share capital to the local partner, Matekane Mining.

An application to have the consideration shares admitted for training on the AIM has been lodged with the London Stock Exchange, with admission expected today.

Government share allocation

In addition, the company has granted a 20% interest  of its 100% shareholding in Meso Diamonds to  the Lesotho Government.

Paragon Diamonds is a diamond producer with pipeline projects in Lesotho, Botswana, Tanzania and Zambia.