Paragon Diamonds gets 10m dollars in project financing

Paragon Diamonds, the Lesotho focused diamond explorer, has won the financing needed to bring its Motete Dyke operation to production.

A memorandum of understanding has been signed with the group's local partner, the Matekane Group of Companies, to provide up to US$10m of project financing.

The loan will be repaid from free cash flows once Paragon's initial costs have been recovered, with the interest rate fixed at 2% above US dollar LIBOR.

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Paragon Chairman Francesco Scolaro said: "This is a significant milestone for the company, especially considering we only started exploring at Motete in December 2011 and now expect to be in production in 2013."

BS