swooped
29 Jan 2015
New email from Philip Manduca Ok Guys as promised I said I would keep you informed of my correspondance with Philip, today I have received the following under the subject of 'rectification' and have been suitably informed (put in place) further. On this basis alone and the fact that I can buy now cheaper than I sold, I will be topping up!---------- ---------- ---------The RNS clearly states that the MOU is a binding MOU in law. Please re-read it carefully. It is unequivocal.In regard to Titanium Capital’s small and adjusting share sale in this agreement, there were three specific reasons for this: firstly, it brings Titanium’s effective shareholding down much closer to 30%, in line with the Takeover Rules and alongside the incoming investor. Secondly, it avoids the company having to issue those shares in a straightforward dilution. Lastly, in the early stage of this agreement, Obtala and Grandinex were expected to deliver 50 million shares and now can or wish to deliver only 40 million. Titanium took responsibility to make up the difference, at an effective opportunity cost to Titanium (given our expectations for future share price performance) to avoid shareholder dilution. The debt component further reduced the need for dilution. If Titanium wished to realise profits at this point, we would and could have sold more. We didn’t and won’t. Both Titanium and myself are in this investment for the very long term, as is the new investor, ITGT.Why else would ITGT take the maximum allowable equity position, lend to Paragon on a three year term, and also provide the company with an immediate commitment to fund an acquisition of a diamond resource as and when we can identify and successfully negotiate to acquire it which will once again prevent further dilution to existing shareholders? We have received unanimous endorsement for this funding deal from the City yesterday and again today, and it has been widely described as the best funding deal in the mining sector for the last 12 months de minimus by mining analysts at the top city institutions in their congratulatory correspondence with us. They do see all the deals, so it’s hard to question the integrity of their hugely positive analysis.In regard to ITGT’s ability to support our distribution of investment grade diamonds, which is the sector in the diamond market that we are focused on, it is extremely hard to gain access to ultra-high net worth investors and consumers and often one has to pay high fees to introducers or utilise the wholesale diamantaires and auction houses. In ITGT, we have a partner who is connected at the highest levels throughout the Middle East, with financial and commercial reach to China and parts of Asia. ITGT has made this investment because they too have identified strong demand for investment grade diamonds from their connections and believe in the medium term prospects for diamond price appreciation. Given Dubai’s rising strength as a distribution hub for diamonds and other luxury items, we have undoubtedly found the optimal distribution and financial partner combination for Paragon. I am in no doubt of this.A diamond production company such as Paragon should (and in my opinion must) not be confined to selling production to one wholesaler or diamantaire, which would have been the case if your hope had been realised, as per your correspondence, for us to partner with a diamond chain or single distribution house. Not least, a production company cannot sell at the best open market price, and worse, the remnants of one’s production that the diamond chain partner does not wish to acquire has less chance of being purchased by others in the wholesale market as it is viewed as rejected goods by a competitor. We wish to retain possession or a financial part interest all the way downstream to the end investor or consumer purchaser.In regard to my experience or lack thereof in the diamond mining sector, did you expect me to be the geologist or mine manager or for Parago
scholomo
29 Jan 2015
Re: interview HiSorry.Yours is the correct link.
Pharma Brown
29 Jan 2015
Re: interview Hi Scholomo,I couldn't find the interview from your link, but found it on Proactive Investors site (I assume that is the same interview?). The link is:[link] very confident and upbeat Philip Manduca. In addition to what we know, Philip has a 'new resource' up his sleeve which he calls 'very exciting' and expects to be able to give news of that to shareholders soon. This perhaps is the 'acquisition' alluded to in the latest RNS.
Pharma Brown
28 Jan 2015
Re: RNS - Financing package An excellent package deal, securing the building of a state-of-the-art fully automated and secured plant for large diamond recovery, the Stage 1 production programme, and the acquisition of a major Dubai-based and focused investment partner, all for under 15% net dilution for shareholders. Congratulations to PM and the management team for laying this immensely significant foundation stone in line with previously declared policy and on schedule. Paragon is now on the runway and ready for take-off! I'm on stand-by to sell elsewhere and upgrade my ticket if the price should fall below 5.5p. This is AIM and we must hold our breathe in expectation of a few short-term sellers; but our new investment partner is likely similarly poised to acquire on the market further shares if that base price should become available in the initial response to this news. Very exciting times lie ahead, and within a few months and processing of the first few hundred thousand tons, we will get what I expect to be proof of concept through the discovery of the first significantly very large and premium-value stones.
dogbawls
28 Jan 2015
RNS - Financing package from the other side:28 January 2015 Paragon Diamonds Limited (`Paragon' or the `Company') Binding Memorandum of Understanding signed for US$12m equity and debt finance packageParagon Diamonds Limited, the AIM quoted diamond development company, ispleased to announce that it has signed a legally binding Memorandum ofUnderstanding (`MOU') with International Triangle General Trading LLC (`ITGT'or the `Investor') with regards to a US$12m equity and debt financing package.ITGT is a privately owned international investment group, with a focus onconstruction, automobiles, real estate and banking. ITGT was established in1991 and is based in Dubai, the wider Middle East and China. The proceeds willfund Stage 1 production at Paragon's 80%-owned Lemphane Kimberlite Pipe Project(`Lemphane') in Lesotho, which is located among a cluster of kimberlites knownfor producing large, high value diamonds. This update is in line with Paragon'sobjective to build a leading vertically integrated diamond company withsignificant interests across the investment grade diamond value chain from themine to the final investor and the consumer.The key terms of the MOU are summarised below: * Terms have been agreed for the funding of Stage 1 production at Lemphane that will involve the extraction of approximately 1 million tonnes of kimberlite over two years and according to an independent report, is expected to lead to the recovery of over 100 diamonds larger than 9 carats, including some stones over 100 carats in size. * A US$12m investment in Paragon from ITGT which is comprised of a mixture of new equity and a secured loan note resulting in limited dilution to existing shareholders. * ITGT will subscribe for 98 million new ordinary shares of 1p each in the Company (`Ordinary Shares'), at 5.5p share raising US$8.09m, the subscription price represents a 4.8% discount to the closing market price as at 27 January 2015. * + Taking into account the 63 million ordinary shares which were purchased and cancelled by the Company at 3p per share from Lanstead Capital L.P. (`Lanstead') as announced on 11 November 2014 the net dilution for existing shareholders is significantly reduced * Issue of US$4m three year secured loan note guaranteed by Paragon and its 100% owned subsidiary Meso Diamonds (`Meso') with a 10% per annum coupon payable annually in arrears. The loan note will be secured as senior debt with guarantees and debentures granted by Paragon and Meso, including security over the plant and machinery at Lemphane. * The Investor will be entitled to appoint up to two nominees to the Board of Paragon. * The Investor intends to increase its interest in Paragon through the acquisition of existing Ordinary Shares including the purchase of 9.09 million Ordinary Shares which are currently held by Titanium Capital at a price of 5.5p per share. This will bring Titanium's interest in Paragon on a fully diluted basis (allowing for the conversion of loans to Ordinary Shares) below 30%. * In addition, Obtala Resources Limited and Grandinex International Corp collectively have agreed to sell 40 million shares in the Company to ITGT at a price of 5.5p per share. * To ensure that the funding package was secured on appropriate terms for shareholders, Stage 1 production at Lemphane is now expected to commence in Q2 2015. * + As previously announced, the design of the plant has been finalised and construction has commenced, including ordering of key long lead time items, ensuring minimal down time between now and the commencement of Stage 1 production. * The Investor has confirmed that it will support Paragon with an additional loan should any suitable
Pharma Brown
27 Jan 2015
Re: Price of diamands falling Probably hardly at all. They are quoting the averaged diamond prices, which includes the vast majority of diamonds which are small-sized and not top quality, mostly of only industrial quality or bottom end of the jewellery market, thus the price per carat is low, and falling since manufacture of minute diamonds for industrial use is taking an increasing part of the industrial market. Paragon is expecting far fewer diamonds, but the size is expected to be very significantly larger and of gem quality. We therefore should be tracking specifically gem diamond prices, and these are inflating as Asian economies in particular improve and wealthy individuals become jewellery buyers.
Weildy
27 Jan 2015
Price of diamands falling From today's Daily Telegraph article on Petra diamonds:"The owner of the famous Cullinan diamond mine in South Africa, which produced the Great Star of Africa for the sceptre of the British crown jewels, said that diamond prices had fallen almost 9pc during the first six months ended December, compared with the same period last year."I wonder how this will affect Paragon?
Weildy
19 Jan 2015
Re: funding Is no news, good news? or not so good news?
scholomo
29 Dec 2014
funding Quite a lot of selling going on today.Obviously some investors do not trust the funding details about to be announced.
scholomo
29 Dec 2014
Re: post by PM HiJust go to ADVFN web site Then scroll down and click on PRG You will then see all the posts from investors.THe one from Pm has been supplied by Swoop.Let me know if you have further problems
andy48
29 Dec 2014
Re: post by PM Sorry could u give the link so I can read it.....I am just learning. Thanks
scholomo
29 Dec 2014
post by PM Good new post by PM over on ADVFN
dyfiman
23 Dec 2014
big future for prg? v. interesting article out today....SMALL CAP IDEAS: Diamond miners, an investor's best friend?ANDREW NEIL, PROACTIVE INVESTORS, FOR THISISMONEY.CO.UKPUBLISHED: 10:39, 23 December 2014 | UPDATED: 10:40, 23 December 20141View commentsThe title of the 1971 James Bond movie 'Diamonds are Forever' doesn't really work when you consider many of the world's major mines are in decline.OK, the stones already dug out of the ground will outlive us by a mere two or three million years, which is as close to forever as makes no difference.But that doesn't mean we're going to keep finding new stones.Diamonds: Can miners keep finding new stones?+1Diamonds: Can miners keep finding new stones?Aside from the Diavik Mine in Canada, which started producing in 2003, there have been no important new discoveries since the early 1990s.Just thirty significant diamond mines are operating in the world today.Meanwhile, the long-term consumer demand story remains intact.More...MIDAS SHARE TIPS: Hangar8 and Gama Aviation to merge and fly with private jet setSIMON WATKINS: Prepare for revolution in the aisles as Tesco scraps supplier feesSMALL CAP IDEAS: Premaitha Health builds foundations for successful European land-grab for its Down's Syndrome IONA testShare dealing: £12.50 a trade with no annual charges - cheap flat-fee certificate salesPetra Diamonds Ltd Share PriceThe sparkling gemstones remain the ultimate aspirational purchase.So, as the middle classes of developing economies such as China and India continue to grow and become wealthier, demand will continue to tick upward.Essentially it's become a market where supply struggles to keep pace with demand.That's good news for the miners already digging.During the next ten years, growing GDP and urbanisation in emerging markets plus shifting consumer tastes are set to drive rough diamond demand, according to analysts at Bain & Company.The firm expects global demand for rough to grow annually by a rate of 5.9%.But research from Dominion, formerly the Harry Winston Diamond Corporation, shows diamond supply from existing or new mines is expected to grow annually by only 2.5% until around 2018, when production is expected to level off and probably decline.Miners therefore, are in the enviable position of operating in a consolidated sector with a large and competitive client base.Three miners - De Beers, part owned by Anglo American (LON:AAL), Russia's Alrosa and Rio Tinto (LON:RIO) – accounted for 80% of world supply by value in 2013, according to Kimberly Process diamond statistics, with thousands of manufacturers vying for their rough.'If you look at the iron ore market, the tanks are being filled with new projects,' said Kieron Hodgson, analyst at Charles Stanley Securities.'The same can't be said for diamonds; there just aren't as many new projects in the hopper.'This means existing diamond miners have become incredibly attractive for long term investors as they operate in an environment that supports price growth.What's more, in a worst case scenario, any price decline would be limited.However, the market can be tough to access.Polished diamond prices vary widely depending on a diamond's carat, colour, clarity and cut.Investing in a supplier seems to make more sense.'In our view, Petra Diamonds is a suitable long-term risk adverse investment,' said Hodgson.'The firm has a number of key projects coming to fruition; it can generate considerable amounts of cash and has made dividend commitments.'The most important characteristic of the firm, according to Hodgson, is that is has seven different mines, a huge portfolio of assets by diamond mining standards and can produce everything from white crystals to coloured stones.In terms of growth potential, DiamondCorp and Firestone Diamonds rank high on Hodgson's list.DiamondCorp has resolved its labour issues and its Lace project in South Africa is set to move into prod
scholomo
19 Dec 2014
sp All 50 deals since 11am this morning have been buys and yet we are marked down over 5percent.
dyfiman
18 Dec 2014
6p mark Afternoon all.Seems quite obvious to me that MM's have, for some reason, been busting agut for several weeks to prevent the share price going over 6p. So why not just let it rollupwards? That would encourage even more investors into the share, leading to more trades and cash earned by mm's. Perhaps a more enlightened investor/s could explainthe rationale behind this skirmishing around a 6p mark and why they'redoing it. Thanks and best regards all.END
