Paragon Says Unit Signs Mining Lease Deal With Lesotho
February 25, 14
(IDEX Online News) – Paragon Diamonds Limited said Meso Diamonds, its 85-percent owned Lesotho unit, has finalized the terms and conditions of a mining lease deal with the Lesotho government for mining of the Lemphane kimberlite pipe.
The agreement allows the firm to start preparations and begin the first stage of production at Lemphane.
The mining lease has been granted for an initial term of 10 years, renewable for three consecutive 10-year periods subject to the terms of the Mines and Minerals Act of 2005.
Stage one of a two-stage production program at Lemphane targets the mining of 500,000 tonnes per annum to recover an expected approximate 10,000 carats per year at a minimum average price per carat of $750.