Paragon Diamonds (LON:PRG) has signed a legally binding share purchase agreement for the Mothae kimberlite resource in Lesotho.
Mothae is near to Paragon’s own Lemphane kimberlite and the plan is to develop the two mines in tandem to turn the group into a 5mln tonne producer within three years.
The acquisition remains subject to approval from the Government of Lesotho and completion of funding.
Paragon said it had supplied extensive details of the company's ability to fund the long term development of the Mothae mine to the Minister.
It signed a memorandum of understanding with Lucara Diamond Corp of Canada in May to acquire Mothae.