2nd Nov 2018 16:32
LONDON (Alliance News) - BlueRock Diamonds PLC said Friday it raised GBP711,000 in a placing and subscription of shares.
The diamond mining company raised GBP626,000 issuing 208.7 million shares at 0.3 pence each. Furthermore, it raised GBP85,000 via share subscription of 28.3 million shares at the same price.
BlueRock shares were trading down 21% at 0.34p.
The company, which is focused on developing its Kareevlei diamond mine in South Africa, said it will use the "larger part of the proceeds" to open up KV1 and KV2, two of the five kimberlite pipes it is mining. The pipes are forecast to supply 40,000 tonnes per month of ore.
Admission of the shares to trading is expected on November 9, following which the firm will have 443.5 million shares in issue.
Chief Executive Officer Adam Waugh subscribed for 16.7 million shares at GBP50,000, he now holds a 5.2% stake in the company. Finance Director David Facey took up 8.3 million shares for GBP25,000 with its total stake now at 3.2%. Finally Non-Executive Director Paul Beck subscribed for 3.3 million shares at GBP10,000 upping its interest to 1.8%.
Furthermore, BlueRock said it appointed Michael Houston as non-executive chairman.
Houston is a "mining veteran" with over 30 years' experience in Africa having held executive roles at Anglo American. He was also chief executive officer of Shanta Gold and chief executive and chief operating officer of Zimplats Holdings.
Currently he holds directorships at Numovista Ltd and Umanate Ltd.
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