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Temporary suspension
Monday, Nov 16, 2015 7:45
16 November 2015
 
Paragon Diamonds Limited / Index: AIM / Epic: PRG / Sector: Resources
  
Paragon Diamonds Limited
(‘Paragon’ or the ‘Company’)
Temporary suspension
 
The Directors of Paragon Diamonds Limited, the AIM quoted diamond development company, announces it has requested a temporary suspension in the trading of its shares with immediate effect pending clarification of financial position.
 
Paragon currently has limited working capital and until a funding package has been secured there is a material uncertainty over the financial position of the Company.
 
The Directors of Paragon remain in negotiations with possible funding providers to secure finance in order to complete the acquisition of Mothae, provide development funding for Lemphane and to repay short-term debts including the £500,000 loan facility which is due on 18 November 2015. If this loan is not repaid within 5 business days of the due date this will constitute an event of default and the lender may request immediate repayment of the loan at 120% of the outstanding amount. Alternatively the lender has the option to convert the outstanding loan into ordinary shares of the Company at the lower of 5.22p, being the average share price on 17 June 2015 when the loan was issued, and 90% of the prevailing market price on the day that the loan is converted.
 
No assurances can be given regarding the terms and the timing of the funding arrangements that the Directors may secure. The Directors therefore have requested the suspension of trading in the Company’s shares until such time as the Company’s financial position has been clarified.
 
Further announcements will be made as soon as practicable.
 
 
**ENDS**
 
For further information please visit www.paragondiamonds.com or contact:
 
Philip Falzon Sant Manduca
      Paragon Diamonds Limited                        
+44 (0) 20 7182 1920
Simon Retter
      Paragon Diamonds Limited                        
+44 (0) 20 7182 1920
 
David Hignell
Gerry Beaney
      Northland Capital Partners Limited
      (Nominated Adviser)
 
+44 (0) 20 7382 1100
 
John Howes
Mark Treharne              
      Northland Capital Partners Limited
      (Sales and broking)
 
+44 (0) 20 7382 1100
Felicity Winkles
      St Brides Partners Limited
+44 (0) 20 7236 1177
Frank Buhagiar
      St Brides Partners Limited
+44 (0) 20 7236 1177
 
 
 
  


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