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Paragon Diamonds appoints new executive chairman as Titanium Capital comes aboard

Published: 16:37 27 Aug 2014 AEST

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Paragon Diamonds (LON:PRG) has appointed Philip Falzon Sant Manduca as executive chairman as it unveiled a loan note agreement with investment group Titanium Capital.

Sant Manduca is chief executive of Titanium and the move comes after natural resource group Obtala Resources (LON:OBT), which holds a 27.33% stake in Paragon and loan notes worth £1.996mln, agreed to sell the notes to Titanium Capital Investments for £998,000.

Martin Doyle, Paragon's current executive chairman, will continue as a non-exec director, the firm said.

Titanium will be able to convert the notes into shares at 2.75 pence each; the notes have a five year term and carry no interest.

Obtala has also granted Titanium an option to buy 60mln shares at 3.25p a share up to December 1 this year.

Paragon's managing director Dr Stephen Grimmer told investors: "Philip is joining Paragon at an exciting time as we look to bring Lemphane into production. Philip's experience in financial markets and extensive network of contacts within the financial sector and amongst high net worth individuals will prove invaluable."

Sant Manduca said: "I am assuming the responsibility to procure for Paragon Diamonds its funding needs in both Stage 1, and within two years, Stage 2 of its development of the Lemphane mine, whilst concurrently exploring further options, including the company's assets in Botswana and Zambia, that can accelerate Paragon's revenue profile."

He added: "Our vision over the next three years is to develop Paragon into a vertically integrated diamond house, with established production from majority owned mines, starting with Lemphane of which we own 80% in conjunction with the Kingdom of Lesotho holding the remaining 20%."

Meanwhile, Obtala Resources chairman Francesco Scolaro said: "We continue to be substantial and supportive shareholders of Paragon and look forward to the new impetus from the team led by Philip Manduca and the potential funding his group may be able to deliver and transforming Paragon to a diamond producer."

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