BlueRock Diamonds provides an update on corporate restructuring
Published by Claire Cuddihy,
Assistant Editor
Global Mining Review,
BlueRock Diamonds plc, the AIM listed diamond mining company, which owns and operates the Kareevlei diamond mine in the Kimberley region of South Africa (Kareevlei), has announced the implementation of a new mining plan in order to increase production with a target of becoming cash flow positive at a corporate level. In order to facilitate the revised plan, the board has restructured the management of the company and has raised additional funding from strategic and other investors.
The company has raised an aggregate of £937 000 (before expenses) via the issue of 937 million ordinary shares of 0.01 pence each in the capital of the company (the placing shares) through a placing and subscription at a price of 0.1 pence per share (the placing price) (the fundraising). The company is also issuing one warrant for every one placing share issued at an exercise price of 0.2 pence with a life of two years from the date of issue (the warrants). The warrants will not be listed.
In addition, certain Directors and a former Director of the company have indicated their intention to subscribe for a further aggregate £45 000 via the issue of a further 45 million shares at the placing price (Director Subscription Shares) subject to approval by the Board (the Director Subscription). Details of their participation and their consequent interests in the company's issued share capital will be described in a further announcement. Accordingly, subject to such further Director Subscription, the total gross amount raised is expected to be £982 000. It is likely that the Director Subscription will constitute a related party transaction under the AIM Rules for Companies.
The Board expects that the funds raised in the Fundraising will be sufficient to reach its medium term goal of processing in excess of 400 000 tpy (2018: 190 000 t). The target for 2019 is between 280 000 t and 330 000 t. The Board expects that the company will be profitable in the second half of 2019 and expects the company to be self-funding going forward.
Read the article online at: https://www.globalminingreview.com/mining/17052019/bluerock-diamonds-provides-an-update-on-corporate-restructuring/
You might also like
Addressing The Battery Market's Elephant In The Room
Priya Sreenivasan and Naphtal Haya, DNV, highlight the importance of clear regulations around transparency in the cobalt supply chain amidst the energy transition.