The license, which has duration of 10 years until 9 October 2023, has been was issued in terms of Section 33 of the terms of the Mines and Minerals Act of 2005 and is renewable.
In accordance with the approved Program of Mining, the license is subjected to the conditions of Section 59 (royalty) and Section 63 (fees) of the Act.
Paragon managing director Stephen Grimmer said the mining license award marks a major milestone and follows two years of considerable exploration and development work on the Lemphane Kimberlite.
Paragon chairman Martin Doyle said, "I look forward to the prospect of reporting on the recovery of exceptional gem diamonds for which the region is famous, such as the 12.47 carat blue diamond recovered from Letseng and recently sold by Gem Diamonds for a record $7.5m or $603,047 per carat."
Following completion of Stage 1 of the mine plan for two years at production of 540 000 tonnes per annum, the company will begin eight-year Stage 2 mine plan of 3,000,000 tonnes per annum for an initial open-pit life of ten years.
