PARAGON DIAMONDS SIGNS MEMORANDUM OF UNDERSTANDING WITH BOTSWANA FIRM

Lesotho-focused Paragon Diamonds says it has signed a memorandum of understanding (MoU) with a private company in Botswana.

The private company is the registered holder of a number prospecting licenses across diamond-prospective areas in Botswana. These include several known kimberlites, including one in the Orapa kimberlite field.

The licenses were issued in July 2011, are valid until June 2014 and can be extended for a further four years subject to certain conditions.

The MoU stipulates a six-month period during which Paragon may review data on the licenses, undertake appropriate due diligence, and negotiate earning an equity interest in the licenses in return for funding exploration costs, on terms to be agreed.

Paragon Diamonds Managing Director Stephen Grimmer says, "The agreement allows the company to quickly accelerate its exploration presence in Botswana, by participating in some prime exploration opportunities. Notwithstanding, the company is also seeking to increase its presence in Botswana, through direct applications for prospecting licenses."

Source: diamondintelligence