TIDMBRD
RNS Number : 6221N
BlueRock Diamonds PLC
10 August 2017
10 August 2017
BlueRock Diamonds PLC
("BlueRock" or the "Company" or "BRD")
Placing and Subscription raises GBP860,000
BlueRock Diamonds plc, the AIM listed diamond mining company
which owns and operates the Kareevlei Diamond mine in the Kimberley
region of South Africa, is pleased to announce that it has raised
an aggregate of GBP860,000 (before expenses) via the issue of
68,800,000 new ordinary shares of 1 pence each in the capital of
the Company (the "New Shares") through a placing and subscription
at a price of 1.25 pence per New Share (the "Fundraising").
The funds will be used to further develop mining operations at
Kareevlei Mine.
The Company's blast programme, at the Kareevlei Mine, has now
completed the removal of the calcrete cap (at a level of 0m to
approximately 10m) from the entire kimberlite pipe and by
mid-August 2017, the Company will have completed the blasting and
processing of the entire first level of Kimberlite (10m to 20m)
which comprised calcretised kimberlite. Thereafter, the Company
will blast the lower level kimberlite where test results indicate a
marked increase in grade is expected which should allow the mine to
move into operational profitability.
Production continues to improve with the Company having achieved
20,000 tonnes of production during July 2017. August 2017 has
started well and it is hoped that there will be an increase on
July's tonnage.
The Company continues to evaluate the whole area covered within
the 3,000 hectares of the Mining Right and will shortly be test
drilling at a minimal cost certain anomalies that have been
identified. Once confident that current operations are operating as
expected, it is the board's intention to explore further on the
current site (which has a total of five identified kimberlite
pipes) and to commence the bulk sampling work on project
Jubilee.
Adam Waugh stated: "These funds will enable us to complete some
minor modifications to our plant designed to increase production
volumes further and provide the working capital to put us in a
position to achieve our short term goal of 25,000 tonnes production
per month. We will soon be mining the sub 20 metre level of
Kimberlite where we expect to see an uplift in our grade of
diamonds recovered and a move to profitable mining. This will put
us in a good position to optimise our known resource at Kareevlei
and explore new opportunities. We look forward to providing further
updates in due course."
Extension of loan facility
As previously announced on 20 July 2017, the Company has now
confirmed that each of Tim Leslie, Mark Poole and Segar Properties
(Hyde Park) Limited, a company wholly owned by Paul Beck, have
extended the maturity date of the six-month loan facility of up to
GBP150,000 (which has been fully drawn) entered into on 15 March
2017 (the "March loan") from the current maturity date of 15
September 2017 such that it will now mature on 31 December 2017. As
previously indicated each of Tim Leslie and Segar Properties (Hyde
Park) Limited have each provided a further GBP20,000 such that the
total March Loan facility has increased to up to GBP190,000. The
March Loan carries a coupon of 10% per annum, payable at the end of
the term and contains no conversion provisions.
Director Dealings and Related Party Transaction
Adam Waugh, Chief Executive Officer of the Company has agreed to
subscribe for 4,000,000 New shares in the Fundraising. Adam Waugh
is considered to be a "related party" as defined under the AIM
Rules and accordingly, their participation in the Fundraising
constitutes a related party transaction for the purposes of Rule 13
of the AIM Rules.
The Directors independent of the Fundraising, consider, having
consulted with the Company's nominated adviser, SP Angel, that the
terms of Adam Waugh's participation in the Fundraising are fair and
reasonable insofar as the Company's shareholders are concerned.
In connection with the Extension of Loan Facility each of Tim
Leslie and Paul Beck, as Directors of the Company, and Mark Poole,
as a substantial shareholder in the Company, are considered to be
"related parties" as defined under the AIM Rules and accordingly,
the Extension of the Loan Facility constitutes a related party
transaction for the purposes of Rule 13 of the AIM Rules.
The Directors independent of the March Loan extension, consider,
having consulted with the Company's nominated adviser, SP Angel,
that the terms of the Extension of Loan Facility provided by Tim
Leslie, Segar Properties (Hyde Park) Limited and Mark Poole are
fair and reasonable insofar as the Company's shareholders are
concerned.
Details of the Fundraising
Application will be made for the New Shares, which will rank
pari passu with the existing Ordinary Shares, to be admitted to
trading on AIM ("Admission"). It is expected that Admission will
become effective and dealings will commence on or around 15 August
2017.
Total Voting Rights
Following the issue of the New Shares, the issued share capital
of the Company will consist of 136,709,580 Ordinary Shares. No
shares were held in treasury at the date of this announcement. The
total current voting rights in the Company are therefore
136,709,580.
The above total current voting rights number is the figure which
may be used by shareholders as the denominator for the calculation
by which they will determine if they are required to notify their
interest in, or a change to their interest in the Company.
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.
For further information, please contact:
BlueRock Diamonds
plc awaugh@bluerockdiamonds.co.uk
Adam Waugh, CEO
SP Angel (NOMAD
and Broker)
Stuart Gledhill
Lindsay Mair +44 (0)20 3470 0470
Yellow Jersey (PR
and IR)
Felicity Winkles
Joe Burgess
Katie Bairsto +44 (0) 7769 325254
About BlueRock Diamonds plc (AIM: BRD)
BlueRock is a diamond mining company with activities in the
Kimberley region of South Africa. BlueRock own a diamond processing
plant and the mining right over the Kareevlei Tenements in South
Africa.
NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS
DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY
ASSOCIATED WITH THEM
1. Details of the person discharging managerial
responsibilities/person closely associated
--- --------------------------------------------------------------------------
a) Name: Adam Waugh
--- --------------------------------- ---------------------------------------
2. Reason for the notification
--- --------------------------------------------------------------------------
a) Position/status: Chief Executive
Officer
--- --------------------------------- ---------------------------------------
b) Initial notification/Amendment: Initial notification
--- --------------------------------- ---------------------------------------
3. Details of the issuer, emission allowance
market participant, auction platform, auctioneer
or auction monitor
--- --------------------------------------------------------------------------
a) Name: BlueRock Diamonds
plc
--- --------------------------------- ---------------------------------------
b) LEI: 213800LVSJ2RNI3SSN92
--- --------------------------------- ---------------------------------------
4. Details of the transaction(s): section to
be repeated for (i) each type of instrument;
(ii) each type of transaction; (iii) each
date; and (iv) each place where transactions
have been conducted
--- --------------------------------------------------------------------------
a) Description of the financial Ordinary shares
instrument, type of instrument: of 1 pence each
Identification code: GB00B84H1764
--- --------------------------------- ---------------------------------------
b) Nature of the transaction: Participation
in the Fundraising
--- --------------------------------- ---------------------------------------
c) Price(s) and volume(s): Price(s) Volume(s)
--------- ----------
1.25p 4,000,000
--------- ----------
--- --------------------------------- ---------------------------------------
d) Aggregated information: Single transaction
Aggregated volume: as in 4 c) above Price(s) Volume(s)
Price: --------- ----------
1.25p 4,000,000
--------- ----------
--- --------------------------------- ---------------------------------------
e) Date of the transaction: 10 August 2017
--- --------------------------------- ---------------------------------------
f) Place of the transaction: Outside a trading
venue
--- --------------------------------- ---------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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