BlueRock Diamonds PLC Operations and Corporate Update (2352H)
23 November 2022 - 8:44AM
UK Regulatory
TIDMBRD
RNS Number : 2352H
BlueRock Diamonds PLC
22 November 2022
BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources
22 November 2022
BlueRock Diamonds PLC ('BlueRock' or the 'Company')
Operations and Corporate Update
BlueRock Diamonds PLC, the AIM listed diamond producer, which
owns and operates the Kareevlei Diamond Mine ('Kareevlei') in the
Kimberley region of South Africa, announces an update on
operational and corporate activity.
Operational Performance
As advised in the update of 28 October 2022, activities since
mid-October were focused on mining the KV2 pit at Kareevlei and
maximising the throughput of the plant to assess its realistic
capacity. Plant throughput was 80,000t in October, the highest
monthly performance achieved to date for the new plant. Grades
remain below target but have improved from those achieved in the
current and previous year.
Proposals to overcome the critical path constraints are being
evaluated so as to minimise additional capital expenditure and
disruption to activities on site and to ensure that sufficient
material is available during the wet season.
The drill and blast activities are being closely managed to
realise operational efficiencies and cost savings. A new contractor
was appointed and is mobilising on site.
Technical specialists are assisting with the performance
improvement assessment and to upskill the mine staff. Security at
the mine has been improved.
Teichmann South Africa Proprietary Limited ('TSA') ZAR30 million
Facility Agreement with Kareevlei Mine
The Facility remains out of terms at present with ZAR47.2
million outstanding at the end of October 2022. No amounts were
settled in October. TSA continues to provide financial assistance
to Kareevlei through the provision of guarantees to suppliers of
diesel and key commodities. The cash challenges have been discussed
with TSA as well as the immediate mining requirements given that it
is not possible to bring the facility within terms in the short
term, in part due to the large increase in diamond stocks in
October and the high stripping ratio in Q3 2022. These diamond
stocks relate to the production during late October and November to
date and should be realised at the November tender.
The plan is to bring the Facility within limits during Q1 2023,
on the assumption that the current mine and plant performance
continues.
Loan note - Mr M Poole and Mr T Leslie
Further to the Company's announcement of 14 October 2022, the
Company provides an update on its GBP462,500 Convertible Loan Note
held jointly by Mr Poole and Mr Leslie which were due for repayment
on 16 October 2022.
The outstanding balance due under the notes is GBP382,500
(GBP151,250 held by Mr Poole and GBP231,250 held by Mr Leslie). The
Company remains in discussions with Mr Poole and Mr Leslie,
regarding an instalment repayment plan of which further details
will be announced once finalised.
Claim by former CEO of Kareevlei
Further to the previously disclosed action being taken by the
Company's former CEO Mr CB Visser. Notice was received from Mr CB
Visser and companies related to him of his intention to pursue a
default judgement against Kareevlei Mining Proprietary Limited and
the Company. Cash security for the value of the claim was
previously transferred to an escrow account managed by the firm of
attorneys which represents Kareevlei and the Company and has been
held as restricted cash on the Company's balance sheet.
The claim is being defended by Kareevlei and the Company.
The Company will provide further updates as appropriate.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via
Regulatory Information Service ('RIS'), this inside information is
now considered to be in the public domain.
**ENDS**
For further information, please visit BlueRock's website
www.bluerockdiamonds.co.uk or contact:
BlueRock Diamonds
Victor Dingle, CEO v.dingle@bluerock.co.uk
SP Angel (NOMAD and Broker)
Stuart Gledhill / Caroline Rowe Tel: +44 (0)20 3470 0470
----------------------------------
St Brides Partners Ltd (Financial
PR) bluerock@stbridespartners.co.uk
Isabel de Salis / Charlotte Page
----------------------------------
Notes to editors:
BlueRock Diamonds is an AIM-listed diamond producer which
operates the Kareevlei Diamond Mine near Kimberley in South Africa
which produces diamonds of exceptional quality and ranks in the top
ten in the world in terms of average value per carat. The Kareevlei
licence area covers 3,000 hectares and hosts five known
diamondiferous kimberlite pipes with a combined inferred resource
of 10.4 million tonnes / 516,200 carats (February 2021); based on
its planned production of 1 million tonnes per annum, this provides
a minimum 10-year life of mine.
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