TIDMBRD
RNS Number : 2462G
BlueRock Diamonds PLC
02 November 2018
BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources
2 November 2018
BlueRock Diamonds PLC ("BlueRock" or "Group" or "Company" or
"BRD")
Placing and Subscription raises GBP711,000 to Increase
Production
Michael Houston appointed as Non-Executive Chairman
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"), is pleased to announce that
it has raised an aggregate of GBP626,000 (before expenses) via the
issue of 208,666,667 ordinary shares of 0.01 pence each in the
capital of the Company (the "New Shares") through a placing and
subscription at a price of 0.3 pence per New Share (the "Placing
Price") (the "Fundraising"). The Company is also issuing one
warrant for every two new shares issued at a price of 0.4p with a
life of one year from the date of issue ("the Warrants"). The
Warrants will not be listed.
In addition, certain Directors of the Company have indicated
their intention to subscribe for a further aggregate GBP85,000 at
the Placing Price via the issue of a further 28,333,333 New 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
GBP711,000.
Use of Proceeds
The Company will use the larger part of the proceeds to open up
KV1 and KV2, two of its five kimberlite pipes it is currently
mining, with the expectation of being able to supply approximately
40,000 tonnes per month of ore to its processing plant starting in
Q3 of 2019. The target tonnage for 2019 is 300,000 to 350,000
tonnes although by Q4 2019 BlueRock expects to be operating at an
annual run rate of 400,000 tonnes. Given the seasonality of the
business and the planned work to be done on the plant it is
expected that Q1 2019 tonnage will be 35,000 to 45,000 tonnes. The
Company's long-term aim is to optimise the resource available and
increase the production to around 500,000 tonnes per annum giving
Kareevlei a life of mine of approximately 10 years from KV1, KV2
and KV3.
The balance of the funds will be used to fund some minor
improvements to the Company's operating plant focussed on
increasing the reliability and hence utilisation rate of the plant.
In addition, BlueRock will be strengthening the operational
management team on the ground to ensure that the plant is being
operated in the most effective way possible and to oversee the move
to a continuous mining operation. Accordingly, the Company expects
utilisation to increase from around 70% to over 85% during
2019.
At an operating level of 40,000 tonnes a month, BlueRock expects
its mining operations to be profitable at a grade of 2.5 cpht. The
Company's average grade from all of its mining operations to date
is 2.6 cpht and excluding the mining of the very low grade material
in the higher levels of the pit BlueRock estimates that the average
grade to date is approximately 3.5cpht.
An updated Company presentation will shortly be made available
on BlueRock's website.
Appointment of Michael Houston as Non-Executive Chairman
As noted in the announcement dated 8 October 2018 the Board is
delighted to announce the appointment of Michael Houston as
Non-Executive Chairman. The Company has already benefited from his
involvement and his experience and expertise will be important as
its expansion plans are implemented for 2019.
Michael Houston is a mining veteran with over 30 years'
experience in Africa having worked with companies including Anglo
American (Executive roles), Shanta Gold (CEO), and Zimplats
Holdings (CEO/COO). He has also worked on a consultancy basis
supporting a number of companies with various project reviews and
due diligence.
The following details in relation to the appointment of Michael
John Houston, aged 68, are disclosed in accordance with Schedule
2(g) of the AIM Rules:
Current directorships Past directorships held within
the last five years
---------------------- -------------------------------
Numovista (Pty) Ltd Shanta Gold Ltd
Umanate (Pty) Ltd Zimplats Holdings Ltd
The Board would like to take this opportunity to thank Paul
Beck, the founding Chairman for his significant input in the
formative years of the business. Mr. Beck will remain a
non-executive Board member.
Paul Beck commented, "I am delighted to welcome Mike Houston to
the Board of BlueRock Diamonds. Mike has many years of mining
experience in Africa and we look forward to working with him to
take the Company forward to the next stage of growth and
development."
Adam Waugh, CEO, commented, "It is the right time for the
business to move to a new level of production now we have ever
increasing confidence in the long term grade of the resource and
high selling value of our diamonds. With this in mind we are
targeting to be operating at an annual run rate of 400,000 tonnes
by the end of 2019, signifying a significant ramp up by doubling
our production over the coming year. A strengthened technical team
is now appropriate to take the business forward to ensure higher
hourly production and longer running times. Our inferred resource
is still 95% intact and I look forward to working with Mike Houston
to maximise its potential."
Details of the Fundraising
Application will be made for the New Shares issued pursuant to
the Fundraising, 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 9 November 2018.
The Warrant certificates will be sent to shareholders in
approximately two weeks.
Appointment of Joint Broker
The Board is pleased to announce the appointment of Turner Pope
Investments as Joint Broker.
Issue of shares for payment of services
A further 4,200,000 new ordinary shares will be issued at a
price of 0.3p in payment for services received.
Total Voting Rights
Following the issue of the New Shares, the issued share capital
of the Company will consist of 443,524,323 Ordinary Shares. No
shares were held in treasury at the date of this announcement. The
total current voting rights in the Company are therefore
443,524,323.
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.
**ENDS**
For further information, please visit BRD's website
www.bluerockdiamonds.co.uk or contact:
BlueRock Diamonds PLC
Adam Waugh, CEO awaugh@bluerockdiamonds.co.uk
David Facey, FD dfacey@bluerockdiamonds.co.uk
SP Angel (NOMAD and Broker)
Stuart Gledhill/ Lindsay Mair/Caroline Tel: +44 (0)20 3470 0470
Rowe
--------------------------------
SVS Securities plc (Joint Broker)
Tom Curran Tel: +44 (0)20 3700 0100
--------------------------------
Turner Pope Investments (Joint
Broker) Tel: +44 (0) 20 3621 4120
Lewis Jones/Andy Thacker
--------------------------------
St Brides Partners Ltd (Financial
PR) Tel: +44 (0)20 7236 1177
Lottie Wadham / Juliet Earl
--------------------------------
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. As at 3 September 2018, it was
estimated that the remaining Inferred Mineral Resource from the
three kimberlite pipes (KV1, KV2 and KV3) represents a potential
inground value of circa US$124 million at a current average run of
mine diamond value of US$362/carat.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCBLBDBXGGBGID
(END) Dow Jones Newswires
November 02, 2018 12:06 ET (16:06 GMT)
Bluerock Diamonds (LSE:BRD)
Historical Stock Chart
From Apr 2024 to May 2024
Bluerock Diamonds (LSE:BRD)
Historical Stock Chart
From May 2023 to May 2024