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BlueRock Diamonds PLC - Reading-based diamond producer focused on South Africa - Signs a loan note subscription deal with Teichmann company Ltd, T-Three-Drilling Ltd and three Teichmann employees (together Teichmann) for a total of £1.6 million due to rainy reason. BlueRock says under the deal, it will initially issue a £1 million simple loan note to Teichmann alongside the provision of a debt funding facility of up to R 30 million to its Kareevlei diamond mine.
Executive Chair Mike Houston says: ‘The need for financing has arisen as a result of the excessive and extended rainy season this year, which has delayed the ramp up of production and the development of our main pit leading to significantly lower production levels and lower grades than expected. Teichmann has demonstrated a strong ongoing commitment to the company and their closer involvement in the management of Kareevlei is expected to assist the company during this critical phase of development.’
BlueRock says its cash resources have been depleted due to the ‘impact of continued wet weather on production and mine development during Q2 2022 in what continues to be a period of heavy investment in mining development’. It says the Teichmann financing will offer funding to invest in continued mining development.
Current stock price: 9.50 pence, down 23%
12-month change: down 79%
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