BlueRock Diamonds PLC Sale of Diamonds (1838P)
08 Junio 2020 - 1:00AM
UK Regulatory
TIDMBRD
RNS Number : 1838P
BlueRock Diamonds PLC
08 June 2020
BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources
8 June 2020
BlueRock Diamonds PLC ('BlueRock' or the 'Company')
Diamonds Sale
BlueRock Diamonds PLC, the AIM listed diamond producer, which
owns and operates the Kareevlei Diamond Mine ('Kareevlei' or the
'Project') in the Kimberley region of South Africa, is pleased to
announce the private sale of 2,400 carats at an average of USD290
per carat for a total of USD700,000.
BlueRock Executive Chairman, Mike Houston, said, "This sale at a
time when the traditional sales channels for diamonds remain closed
and at a price which we estimate to be at current market value for
that particular parcel of diamonds is an excellent result in a
highly uncertain market. The parcel sold did not contain any
notable high value diamonds and therefore the price achieved is
approximately 15% below what we would have expected to achieve for
this parcel pre the Covid-19 pandemic. At a sale price of an
average of USD290 per carat, which we hope represents the bottom of
the market, the Group is cash flow positive. Following receipt of
the sale proceeds the Group's cash balance will be cGBP1.1 million
and there is a further GBP268,000 to be received in August 2020
from the Teichmann Group in accordance with the terms of the
placing in February 2020.
"This sale significantly reduces the risks of operating in the
Covid-19 environment. It remains our plan to sell our future
production through Bonas-Couzyn N.V, in Antwerp as per our
arrangement announced on 13 May 2020. We now anticipate that the
first sale of Kareevlei diamonds in Antwerp will be in September
with June to August production pre financed monthly at 70% of value
by Delgatto Diamond Finance Fund LP in accordance with our
non-binding letter of intent."
Market Abuse Regulation (MAR) Disclosure - Certain information
contained in this announcement would have been deemed inside
information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.
ENDS
BlueRock Diamonds PLC mhouston@bluerockdiamonds.co.uk
Mike Houston dfacey@bluerockdiamonds.co.uk
David Facey, FD
SP Angel (NOMAD and Broker) Tel: +44 (0)20 3470 0470
Stuart Gledhill / Caroline Rowe
---------------------------------
St Brides Partners Ltd (Financial Tel: +44 (0)20 7236 1177
PR)
Susie Geliher / Cosima Akerman
---------------------------------
Notes to editors:
BlueRock Diamonds is an AIM-listed diamond producer which
operates the Kareevlei Diamond Mine near Kimberley in South Africa
which produces diamonds of exceptional quality and ranks in the top
ten in the world in terms of average value per carat. The Kareevlei
licence area covers 3,000 hectares and hosts five known
diamondiferous kimberlite pipes. As at November 2018, it was
estimated that the remaining Inferred Mineral Resource from the
four kimberlite pipes (KV1, KV2, KV3 and KV5) represents a
potential inground number of carats of 367,000.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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