Located close to Paragon’s nearby Lemphane Kimberlite pipe project, Mothae is estimated to host an indicated and inferred 39 million tons of ore at 2.7 carats per hundred tons.
Paragon managing director Dr Stephen Grimmer has discussed the company’s long term development plans with the government for Mothae mine.
The transaction is subject to regulatory approval and completion of funding.
Paragon plans to polish certain diamonds recovered from the Mothae asset. Lucara will be entitled to receive 5% of profits generated from sale of polished stones.
Paragon Diamonds executive chairman Philip Falzon Sant Manduca earlier said: "Mothae is the perfect fit for Paragon at this stage of our growth and business development.
"We have agreed to incorporate the entire Mothae senior and mid-level Lesotho based management teams into Paragon within our Lesotho subsidiary, Meso Diamonds."
