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Audited Final Results
Paragon Diamonds Limited, the AIM quoted vertically integrated diamond development company in Lesotho, Africa, has announced its audit final results for the year ended 31 December 2014.
Overview
– Substantial progress made towards building a leading vertically integrated diamond company – retaining ownership of the journey of a stone from the ground to the high street to ensure value is retained for shareholders
– Secured a 10 year Mining Lease at the 48Mt Lemphane kimberlite project in Lesotho which is renewable for a further three consecutive 10 year periods
– Positive independent modelling report strongly points to Lemphane being a similar large high value deposit as Gem Diamond’s nearby Letseng mine:
+100 carat diamond expected per million tonnes processed
12% of carats exceeding 9 carats
Conservative grade of 2cpht used as modelling basis
Grade and value to rise as tonnages processed increased
– Values as high as US$2,500 per carat achieved in test sale, in November 2014, of diamonds taken from Lemphane during the 2012/2013 bulk sample programme
– Lemphane has been increased to a minimum of 48Mt of kimberlite following an additional 9 hole drilling programme, which significantly increases the project’s economic potential.
– Strengthened the Board with the appointment of Philip Sant Falzon Manduca, pioneer in the European hedge fund industry, to lead Paragon’s development into a vertically integrated diamond company
Post Period
– MOU signed to acquire the 39Mt large/high value diamond Mothae Kimberlite mine (‘Mothae’) in Lesotho from Lucara Diamond Corporation for US$8.5M
– Mothae has the potential to hold 100+ carat stones – to date a 56.5 carat diamond has been valued at over US$31,000 per carat and a 28.9 carat stone has achieved US$42,000 per carat in December 2011
– Initial 25Mt mine plan at Mothae with a minimum in-situ value of US$867m, an NPV of US$115m (discounted at 12%) and is forecast to generate US$60m+ annual revenues over a minimum 12 years of full production
– US$26M of non-dilutive debt and equity based funding agreed with International Triangle General Trading LLC, a global investment group based in Dubai, subject to contract and the conclusion of the acquisition of Mothae
– Targeting first production at Lemphane and Mothae in 2015, which is anticipated to generate combined revenues of approximately US$36 million in the first full 12 months of both mines being in production
