PARAMOUNT Mining is on the lookout for new diamond projects in South Africa and says a new alliance with black economic empowerment (BEE) group JMPLC Investment Holdings could assist in the endeavour.
Paramount, headed up by mining identity Maureen Muggeridge, signed the memorandum of understanding with JMPLC under BEE laws designed to address the uneven distribution of wealth in South Africa.
Paramount already owns the Vaal River project in South Africa and tested the Rooikoppie gravel deposit, which proved uneconomic. It has now moved onto the Slypklip North Fruit Farm prospect.
Paramount said under the new legislation its BEE partner must have a 26% stake.
While fellow Australian companies Argosy Minerals and AIM Resources have both recently abandoned South African projects because of the drawn-out process of getting approvals for their respective projects, Muggeridge said the BEE legislation could improve the welfare of thousands of citizens without negatively affecting the profitability of the mining companies.
"This is a worthwhile challenge. The opportunities are there for those prepared to look to the bigger picture emerging beyond the perceived obstacles of the present," she said.
The new joint venture with JMPLC is investigating a number of targets in the Northern Cape and adjacent Free State province.
Paramount is also exploring at the Ellendale, Ullawarra and Napier projects in Western Australia. At the end of the March quarter the company had $1.9 million cash at hand.
Shares in Paramount dropped nearly 6% at the time of the announcement and were this morning steady at 8c.
