In a somewhat curious move, Paragon Diamonds (PRG) has raised £500,000 through short-dated unsecured debt financing. The loan matures on 30 September 2015 and carries a fixed monthly interest rate of 1.25 per cent. A total of 3.6m detachable call warrants have been issued, valid for five years, and exercisable at the as-yet unspecified holder’s discretion.
IC TIP:
Buy
at
5.3p
The funds raised have been partly earmarked for use in a share buy-back programme designed to support the miner’s share price ahead of a decision from the Lesotho Ministry of Mines over Paragon’s proposed deal to acquire the Mothae Diamond project from Canada's Lucara Diamond Corp.
