AIM-listed diamond producer, BlueRock Diamonds has agreed heads of terms with the Teichmann Group for a £1.61 million loan note with the intention that this will be replaced by a convertible loan note, which will increase the aggregate shareholding of the Teichmann Group concert party to about 49% if converted.
"…Teichmann is demonstrating its commitment by investing a further £1.61m into the company, which will provide us with the capital to deliver the expansion project while providing the working capital to further develop mining operations,” company executive chairperson Mike Houston.
“In addition, we will benefit from a further strengthening of our already close working relationship with Teichmann, which will provide a greater depth of expertise at the operational and management level in South Africa.”
He also said that BlueRock had completed about 80% of the expansion project at Kareevlei, which is on track to be commissioned in July.
Once commissioned this would increase the company’s annual revenue to about $16 million, while the cost per unit will reduce significantly to around $220 per carat compared with an average sale price for the first three months of 2021 of $446 per carat.
BlueRock has also decided to increase the development mining on the main pit and is considering bringing the company's largest pipe, KV3, into operation earlier than planned.
The introduction of KV3 would provide further flexibility and lower the strip ratio once the initial pipe development has been completed.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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