Shares in Paragon Diamonds (LON:PRG) have been suspended while it works on a funding package to complete its Mothae acquisition.
Paragon has to repay a £500,000 short-term loan on 18 November.
If the deadline is missed it become immediately repayable five days later at 120% of the outstanding amount, though there is an equity conversion alternative.
Paragon’s directors said they had requested suspension of the shares until the financial position has been clarified.
The explorer’s plan is to develop Mothae in tandem with its nearby kimberlite deposit at Lemphane. A funding package would cover both projects.
Trading was halted Monday at a price of 3.98p.