28th Apr 2016 11:02
LONDON (Alliance News) - BlueRock Diamonds PLC, the AIM-listed diamond mining company which owns and operates the Kareevlei mine in South Africa, on Thursday said it raised GBP700,000 by selling 6.4 million new shares at 11 pence each to new and existing investors.
Shares in BlueRock were down 6.9% at 14.90p on Thursday.
"The funds raised will enable us to continue the transformation of our mining activity at Kareevlei. We are at an early stage in the exploitation of our reserves and this funding will support the continued development of the known assets in our licence area," Chief Executive Officer Adam Waugh said in a statement.
Waugh is buying 227,273 shares in the placing, which will comprise his entire 0.59% stake in BlueRock.
Also acquiring the same number of shares is Paul Beck, the company's non-executive chairman, who will have an interest in just shy of 2.0 million shares, equivalent to a 5.07% stake.
BlueRock said Beck and Waugh made a binding commitment to underwrite the potential participation in the placing by a "certain investor" it did not name. In the event that the investor is unable to complete the documentation required for "his" participation by April 29, Beck will subscribe for an additional 195,455 shares Waugh will subscribe for an additional 195,454 shares.
In addition, the company said it approved the grant of options over 776,091 shares to Waugh, representing 2.0% of the company on completion of the placing. The options can be exersied between May 1, 2017 and April 30, 2021. Therefore, Waugh will hold options over a total of 776,091 shares.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
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