Exercise of Call Option Over Paragon Diamonds

RNS Number : 5653X

Obtala Resources Limited

20 November 2014

 

20 November 2014

Obtala Resources Limited

("Obtala" or the "Company")

 (AIM: OBT)

Exercise of Call Option Over Paragon Diamonds Limited

Obtala Resources Limited (AIM:OBT), the emerging agri-processing, farming and timber company, announces that further to the announcement of the 27^th August 2014, Titanium Capital Investments Limited ("Titanium") has exercised the call option of 60 million shares held in Paragon Diamonds Limited ("Paragon") by the Company.

Titanium has requested and Obtala has agreed that the settlement of the call option will be made in two tranches. Payment for and transfer of an initial tranche of 24,000,000 shares (with a payment of £780,000) will be made on the earliest practicable settlement date following the service of the Exercise Notice, with the outstanding settlement of the second tranche of 36,000,000 shares (with a payment of £1,170,000) being made on 1 March 2015. The date of the settlement of the second tranche is conditional on Paragon receiving shareholder approval for the buyback of the Lanstead shares as previously announced by Paragon on the 11th and 14th November 2014. If the required shareholder approval is not granted then settlement of the second tranche will take place as soon as reasonable practical after the 11th December 2014.

Obtala Resources Francesco Scolaro - Chairman Simon Rollason - Managing Director www.obtalaresources.com	[phone]
ZAI Corporate Finance Limited (Nomad)	[phone]
Richard Morrison Ray Zimmerman
Fox-Davies Capital (Broker)	[phone]
Daniel Fox-Davies Jonathan Evans
Square 1 Consulting (Public Relations)	[phone]
David Bick Mark Longson

 

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