Paragon Diamonds (LON:PRG) now has full ownership of International Diamond Consultants (IDC) after acquiring the remaining 1.5 percent stake from Obtala Resources (LON:OBT).
IDC holds interests in the group’s Lemphane and Motete mining exploration projects in Lesotho and the KapLamp lamproite project and the Kabale kimberlite exploration project, which are both located in Zambia.
Paragon bought 44.3 percent of IDC in December 2010 and increased its interest to 98.5 percent the following year.
In return for the 600,000 IDC shares, which were valued at 88 US cents each, Paragon has issued 970,588 shares at 34 pence per share worth a total £330,000 to Obtala.
“I am pleased that Paragon now holds 100 percent of IDC, with the positive results now coming from Lesotho I believe this will generate further upside for PRG shareholders,” said chairman of Paragon Francesco Scolaro.
“The value per share paid to Obtala for its stake in IDC is the same as that offered to the previous vendors of IDC, which I believe, in light of the current good news flowing out of Lesotho, represents good value for the shareholders of Paragon.”
Scolaro is also the executive chairman of Obtala, which currently holds a 45 percent stake in Paragon.
Earlier this month, Paragon released the latest data from Motete, showing comprehensive micro-diamond grades of 90 cpht at +0.85mm and 60 cpht +1.18mm, while its own consultant confirmed in-house tonnage estimates of 1.1 Mt to 2,350 m ASL.
The value of the diamonds at the site was provisionally estimated by its diamond valuer at US$ 160 per carat for +0.85mm and US$ 200 per carat for +1.18mm diamonds.
Paragon added that road access is complete and the first bulk sample of 350 tonnes had been mined and transported to the process plant.
A delineation drilling programme of four drill holes starts in early May, which will be the basis of an initial diamond resource at Motete.
Investors liked the news, sending shares in Paragon up two percent to 29.75 pence in early deals, giving it a market cap of £57.75 million.