Paragon Suspends Sierra Leone Operations

Paragon Diamonds has placed its Konoma Alluvial mine on care and maintenance after ‎the Sierra Leone government requested the company reapply for its mining license on ‎the site. ‎

Paragon Diamonds‎“The Company will continue to seek clarification on the irregularities surrounding these ‎issues – particularly as the licenses under discussion were issued as valid until April 2016, ‎and are not subject to any renewal at this time,” said Stephen Grimmer, managing ‎director of Paragon. “In addition we continue to seek a response to previous requests to ‎the Ministry to re-structure our mining license holdings in Sierra Leone.”‎

The company explained that it has no further investments in Sierra Leone since the ‎cessation of operations, and has reduced its operating costs to the minimum necessary ‎to maintain its physical assets and the few remaining staff in-country.‎
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Paragon’s focus has therefore shifted to its Lemphane and Motete kimberlite projects in ‎Lesotho. ‎

‎“The potential exists in Lesotho to rapidly develop a diamond resource far exceeding the ‎stated mineral assets in Sierra Leone,” Grimmer said.‎

Earlier, Stellar Diamonds said it received similar notification from the government ‎revoking its Kono licenses. ‎

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