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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
8 of the best properties for sale with indoor swimming poolsThe best properties for sale with indoor swimming pools – from an award-winning contemporary house in East Sussex, to a converted barn in Hampshire
-
Chinese stocks slump on first trading day of 2025Chinese stocks suffered in the new year from their worst first day of trading since 2016, despite a state stimulus package
