24th Oct 2018 12:19
LONDON (Alliance News) - BlueRock Diamonds PLC said Wednesday it believes the claims from its former chief executive officer Riaan Visser to "have no merit" and it intends to defend them "vigorously".
BlueRock shares were trading down 9.1% at 0.50 pence.
On Tuesday, Visser initiated the recovery proceedings of a security granted by the company by filing a claim in the High Court of South Africa for ZAR3.5 million, GBP187,000.
In August, the company said that its former CEO wanted to file an application to place one of its operating subsidiaries in provisional liquidation.
Following discussions, Visser agreed to halt the liquidation proceedings for Kareevlei Mining Ltd, after BlueRock agreed to provide a security of approximately GBP230,000 relating to Visser's claims in exchange for his removing of Kareevlei Mining from the court roll.
"The company's legal advice remains that Visser's claims have no merit and the company intends to defend them vigorously," BlueRock said.
"Nevertheless, Visser's claims are fully provided for in the balance sheet of the company and security has been provided to the South African Courts for the full amount of the initial claim."
Court proceedings are expected to take at least 18 months until reaching a final resolution.
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