BlueRock signs on the dotted line over loan note subscription agreement with Teichmann


BlueRock Diamonds PLC, the owner and operator of the Kareevlei Diamond Mine, has signed a loan note subscription agreement for GBP1.61mln.

The agreement is with Teichmann Company Limited, T-Three-Drilling Limited and three Teichmann employees, and was presaged in an announcement back in May.

Under the subscription agreement, BlueRock will initially issue a GBP1.61mln simple loan note (SLN) to Teichmann with the intention that this will be replaced by a convertible loan note (CLN).

READ BlueRock Diamonds on track at Kareevlei as Teichmann Group increases its support

The SLN expires at the end of October of this year and carries a coupon of 14.5% per annum/ The CLN, when it is issued, is expected to have a 42-month term, a strike price of 40p and will also carry a coupon of 14.5%.

The CLN will be eligible for conversion into BlueRock shares at any time three months after they have been issued provided the company’s share price is above 60p.

“We have commenced the commissioning process of our new plant and I am delighted to say that despite the challenges of moving to the targeted 1 million tonnes of ore milled per annum, this long journey is reaching an end,” said Mike Houston, the executive chairman of BlueRock.

“We are extremely excited with the discovery of the three large diamonds, a 58.6 carat, 21.6 carat and 14.3 carat, recently announced. The larger stone, which is more than double the size of our previous record, demonstrates the potential of the resource at Kareevlei; as production increases, the recovery of further large stones should follow. This, together with the high run of mine diamond price and the significant unit cost reduction driven by the benefit of the economy of scale, augurs well for the future. We are looking forward to receiving the August tender results after which in early September we will announce the sale value of these three stones,” he added.


Please enter your comment!
Please enter your name here