BlueRock Diamonds PLC Operational update and Loan Facility (4860Z)
March 15 2017 - 2:01AM
UK Regulatory
TIDMBRD
RNS Number : 4860Z
BlueRock Diamonds PLC
15 March 2017
BlueRock Diamonds plc
("BlueRock" or "the Company")
Operational update and Loan Facility
15 March 2017
BlueRock Diamonds plc, the AIM listed diamond mining company
which owns and operates the Kareevlei mine in South Africa is
pleased to give the following operational update. The Company's new
crushing and screening operation is now fully operational, has been
tested under full load and is performing well. BlueRock now has the
capacity to produce sufficient material to supply the processing
plant and also create stockpile for nightshift operations. This
significantly aides our ability to meet production targets as well
as reducing running costs per tonne.
24 hour production successfully began on Wednesday 8(th) March.
The plant performed well and target tonnages appear well within
reach. The Company intends to work a five day, 24 hour production
schedule with maintenance being carried out on Saturdays.
BlueRock is happy to report that the extreme wet weather
experienced during the first 10 weeks of 2017 is abating and
behaving in a more normal pattern. The diamondiferous kimberlite
rock being processed is still higher in water content than normal
but is treatable and being fed at approximately 80% of optimal
rates.
New opportunities
The new management in place since mid-2016 have been looking for
new opportunities for BlueRock and, with the operation at Kareevlei
now progressing towards target levels of production, management are
starting to evaluate some of these prospects with a focus on
diamond deposits.
The profile of diamond producers has become extremely polarised
in the last 5 years at the very large and very small end of the
spectrum. BlueRock's management see an opportunity in the market to
take on attractive, known diamond deposits too small for the larger
players and out of reach of the small operators.
Funding update
The Company has agreed the terms of a GBP150,000 unsecured loan
facility with Tim Leslie and Paul Beck, two of its directors, and
Mark Poole, one of its major shareholders (the "Loan Facility") in
order to provide extra working capital required largely as a result
of the delays caused by the unusually high rainfall that has been
experienced in the Northern Cape over the last couple of months.
The Loan Facility, comprising of a maximum contribution from Tim
Leslie and Mark Poole of GBP62,500 each and Segar Properties (Hyde
Park) Limited, a company wholly owned by Paul Beck, GBP25,000, has
a term of six months and a coupon of 10% per annum, payable at the
end of the term.
Where a company enters into a related party transaction, under
the AIM Rules for Companies ("AIM Rules") the independent directors
of the company are required, after consulting with the company's
nominated adviser, to state whether, in their opinion, the
transaction is fair and reasonable in so far as its shareholders
are concerned.
Each of Mark Poole (as a substantial shareholder in the
Company), Tim Leslie (as a substantial shareholder and a director
of the Company) and Paul Beck (as a director of the Company), are
considered to be "related parties" as defined under the AIM Rules,
and accordingly, the provision of the Loan Facility, is considered
to be a "related party transaction" for the purposes of Rule 13 of
the AIM Rules. The Directors independent of the transaction, being
Adam Waugh and André Markgraaff, consider, having consulted with SP
Angel Corporate Finance LLP, the Company's nominated adviser, that
the terms of the related party transaction are fair and reasonable
insofar as the shareholders of the Company are concerned.
The Company looks forward to providing regular updates in
relation to its operations as the processing of run of mine
material continues.
Adam Waugh, CEO commented: "Kareevlei mine has had a significant
overhaul over the last nine months. We have made many changes to
the operation and we move into this new phase of increased
production with excitement".
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Enquiries:
BlueRock Diamonds SP Angel Corporate
plc Finance LLP
Adam Waugh, CEO Nominated Adviser &
awaugh@bluerockdiamonds.co.uk Broker
Stuart Gledhill / Lindsay
Mair
+44 (0) 20 3470 0470
About BlueRock Diamonds plc (AIM: BRD)
BlueRock is a diamond mining company with activities in the
Kimberley region of South Africa. BlueRock owns a diamond
processing plant and the mining right over the Kareevlei Tenements
in South Africa.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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