REG - BlueRock DiamondsPLC - Corporate Update

Bluerock DiamondsAnnouncement

24/05/2023 15:45

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RNS Number : 5511A  BlueRock Diamonds PLC  24 May 2023

BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources

24 May 2023

BlueRock Diamonds PLC ('BlueRock', 'BRD' or the 'Company')

Corporate Update

 

BlueRock Diamonds (BRD), the AIM listed diamond producer, which owns and
operates the Kareevlei Diamond Mine in the Kimberley region of South Africa,
announces the following update regarding its principal operating subsidiary,
Kareevlei Mining (PTY) Limited ("Kareevlei"), which is currently in a Business
Rescue process.

The BRD Board was notified on 16th May by the Business Rescue Practitioners
("BRPs") of Kareevlei of the adoption of a Business Rescue Plan, based on the
only proposal considered by the BRPs by the creditors of Kareevlei. The Board
noted that the indicative proposal considered by the BRPs contained a number
of conditions for this to be implemented (e.g. regulatory approval and renewal
of the mining license). The Board is engaging with the BRPs to clarify the
likely outcome for BlueRock and is awaiting further information from the BRPs
before a definitive view on the way forward and impact on BRD shareholders can
be formed. The Business Rescue Plan indicates that there is a proposal being
led by the Teichmann Group for the acquisition of Kareevlei either through the
assets of Kareevlei or its shares and loan account owned by BRD, and that a
potential dividend of 10c in the Rand could be paid to unsubordinated
creditors. In terms of BRD's unsubordinated claim this indicates an amount of
approximately R 85k (based on the outstanding unsubordinated loan as at 24
February 2023) although the board notes that this is significantly less than
the amount outstanding to all of the creditors of BlueRock of approximately
£2.7m. The final distribution and receipt by BRD will depend on if or how the
offer is implemented.

 

Further announcements will be made in due course 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 / Harry Davies-Ball   Tel: +44 (0)20 3470 0470

 

 

 

 

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