Paragon Diamonds Limited Temporarily Suspends Trade

(IDEX Online News) – Paragon Diamonds Limited yesterday (Monday) announced that it had requested a temporary suspension in the trading of its shares pending clarification of financial position.

The company is listed on the Alternative Investment Market (AIM), which is operated by the London Stock Exchange.

The company said it has limited working capital and until a funding package has been secured, there is a material uncertainty over its financial situation.

Paragon is currently negotiating with possible funding providers to secure finance in order to complete the acquisition of the Mothae kimberlite project and to provide development funding for Lemphane, both of which are located in Lesotho, and to repay short-term debts including the £500,000 ($758,892) loan facility, which is due on November 18.

If the loan is not repaid within five business days of the due date, the lender may request immediate repayment of the loan at 120 percent of the outstanding amount.