Paragon Diamonds Ltd has raised £3.8m in order to finance the development of its projects in Sierra Leone and Tanzania.
Paragon joined Aim on 1 November following the fundraising at 20p a share. That valued the company at £21.4m. The shares went to a 10% premium on the first day’s trading. At 22p a share, Paragon is valued at £23.5m.
Paragon issued £17.5m worth of shares to Obtala in return for the Konoma alluvial diamond mine in Sierra Leone and £2.5m worth of shares for the Mabuki diamond licence. The latter deal is dependent on the licence renewal and approval for change of ownership.
The net amount raised was £3.18m and this will provide working capital for the Konoma mine. It will also finance exploration in Sierra Leone and Tanzania.
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