The project, which has existing infrastructure, a camp and a diamond processing plant in place, is located just 5km from Letšeng, the highest dollars-per-carat kimberlite diamond mine in the world.
Paragon Diamonds Mining News
The Africa-focused miner needs funding to complete the acquisition of the Mothae project and to repay short-term debts, including £500,000 due this week.
Shares in the Africa-focused diamond miner climbed almost 6% after it revealed the Mothae kimberlite project in Lesotho may be more profitable than previously assumed.
The star of the show was a 341.9 carat diamond —unveiled in April —, which sold for $20.55 million
The miner, which does not yet generates any income, expects to kick-off production at its Lemphane and Mothae mines later this year.
Developing Mothae and Lemphane concurrently would allow Paragon to benefit from significant economies of scale, said Paragon Diamonds.
Paragon will now hold 80% of the equity in the project, together with the Government of Lesotho holding 20%.