News & Analysis » UK

Paragon Diamonds: Expanding Exploration into Botswana

Contributed by Fox-Davies Capital

Paragon Diamonds has entered into a memorandum of understanding (MoU) with a private Botswanan company. The Company is the registered holder of a number of prospecting licences (PL's) across diamond-prospective terrains in Botswana, covering 1,686km2 over several known kimberlites including one in the Orapa Kimberlite Field. The licences were issued in July 2011, are valid until June 2014 and can be extended for a further four years subject to certain conditions. The MoU stipulates a six month period during which Paragon may review data on the licences, undertake appropriate due diligence and negotiate earning an equity interest in the licences in return for funding exploration costs, on terms to be finalised.

Paragon is expanding its search for diamonds across Southern Africa. Apart from its key projects in Lesotho, it owns leases in Zambia, Botswana and Tanzania. Botswana is one of the prime locations for diamond exploration globally and has political stability and well defined mining regulations. This agreement allows Paragon to quickly accelerate its diamond exploration presence in Botswana, by participating in some prime exploration opportunities. Paragon is also seeking to expand its presence in Botswana through direct applications for PL's.