Paragon Diamonds Ltd recently announced that it had been notified that Titanium Capital Investments Ltd has exercised its call option over 60,000,000 Ordinary Shares in the company from Obtala Resources Limited at a price of 3.25p per share.

Titanium and Obtala have agreed that the option is to be settled in two tranches – the first one to be paid immediately - with a delayed settlement extended to part of the shares (final settlement) until 1 March 2015, conditional upon the company successfully completing the buyback of the Lanstead shares as previously announced on 11 November 2014; failing which, the settlement date for the final tranche of the option will be as soon as practicable after this date.

Following the settlement of the initial tranche, the holding of the Company’s Chairman, Philip Falzon Sant Manduca, will represent 7.4 per cent and the holding of Obtala will account for 20 per cent of the company’s issued share capital. Obtala will remain the legal and beneficial owner of the final tranche of the Option Shares pending settlement of the final tranche.

“This additional £1.95 m investment in Paragon shares by Titanium Capital Investments reflects a number of recent positive developments both within the Company, at our flagship Lemphane Kimberlite project in Lesotho including a sample sale of diamonds which achieved values as high as US$ 2,500 per carat, and in our on-going positive assessment of the prospects for diamond prices over the long term,” said Manduca. “I believe Paragon remains significantly undervalued as a company and I expect an increasing number of global investors to come to the same conclusion as me shortly, as the good news at Paragon is anticipated to continue in the near future as we advance Lemphane towards Stage 1 production in Q1 2015.”