Obtala Resources is planning to list its Paragon Diamonds subsidiary on the London Stock Exchange's Alternative Investment Market (AIM) segment beginning November 1, 2010, financial news outlets report.

The diamond company said that once Paragon is AIM-listed, it will issue 87.5 million new shares, enabling it to buy all the available shares of Sierra Leone Hard Rock (SLHR) from Obtala for £17.5 million. SLHR owns and runs the Konoma diamond mine in Sierra Leone.

According to the plan, Paragon Diamonds will also buy African Rock Resources (ARR), which currently owns the Mabuki Diamond license in northwest Tanzania. The Mabuki license area comprises 64 square kilometers and contains diamond deposits being worked on a small scale. For this transaction, Paragon is expected to pay £2.5 million by issuing 12.5 million shares.