Paragon Diamonds Limited awarded mining license

Paragon Diamonds Limited has been awarded a Mining Licence by the Lesotho Ministry of Mines for its 85 percent owned Lemphane Kimberlite project in Lesotho.The Licence is for duration of 10 years until 9 October 2023, and is renewable.

The approved mining program is based on a two-year stage 1 mine plan of 540,000 tonnes per year, followed by an eight-year stage 2 mine plan of 3 million tonnes per year for an initial open-pit life of 10 years. The company is still in the process of negotiations regarding government participation and royalty but expects terms to be in line with other mining licenses awarded in the region.

Paragon Diamonds shares were up 12.3% at 6.74 pence early Monday, one of the biggest rises on AIM.