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KVM and BRD are the same.
When dealing with company statements you should never assume anything.
If an official company statement says one thing, irrespective of what it looks like or what it might turn out to be, you have to take it as read until confirmed as being incorrect. BRD have made a statement that a loan from KVM to BRD needs repaying and currently stands at £6m.
Well there is that.
The confused seem to be those who have jumped in here without doing any research on the company.
FWIW
we have today Buy 0.1199. Sell upto 5 Million Shares @ 0.113
For those who don't understand that, I think they should RNS it, its confused people.
A little bit of Company History for new investors.
'This is mining right MR70/2007 for the Kareevlei Diamond Mine and covers all of Farm No. 113 and a NE portion of farm No. 142 with an area of 3088.9234 hectares. It commenced on August 21, 2007 for a period of 12 years ending August 20, 2019. It is 100% owned by Kareevlei Mining (Pty) Limited, which is a subsidiary of Bluerock Dimaonds after they acquired Dimaond Resources (Pty) Limited which was a subsidiary of Tawana Resources NL. '
Hence the reference in the latest RNS about renewing the licence. We do not have to stump up £6 Million. It is an unsecured loan for accounting purposes.and has to be relayed in this way to adhere to SA law so we can renew.
Either way, it needs clarification and a reissue if this isn't correct.
That's exactly how I read it also, we (BRD) owe £6m. If that's not the case then it's at least a slither of sunlight...
It means payable to.
Your probably right. But that's not what the current section states.
It clearly states that the £6m is a loan TO BRD not from.
Exactly s-k.
The two are the same entity. We owe £6Million to ourselves. It is a accounting issue as we apply to renew the licence to mine.
You are mistaken. Look at the annual report. The loan is FROM Bluerock TO it’s subsidiary KMPL.
It merely funds the mining work that the subsidiary is doing.
This is a loan that the subsidiary pays BACK to Bluerock. See note 12 of the annual report:
“The intercompany balance is a loan to Kareevlei Mining Proprietary Limited that bears interest at the Nedbank Limited prime variable overdraft rate or unsecured loans to corporate customers and is repayable on demand. The carrying value of all trade and other receivables including the loan to group company is considered a reasonable approximation of fair value.”
The value owed TO Bluerock was £4.0m in 2016 and £5.6m in 2017.
The subsidiary must repay these monies TO Bluerock before it pays Bluerock dividends.
Connie,
It was attempted to be hidden in the recent release.
It’s just before the “Guidance for 2019 and 2020” section within the section entitled “Mining Right and changes to the South African Mining Charter”.
It states “Given the structure of the shareholders' agreement from the Company to Kareevlei Mining Limited ("KVM"), which requires the loan to BlueRock, which currently stands at over GBP6 million, to be repaid before any dividends are declared in KVM, this is expected to have little or no economic impact to the Group.”
In combination with other commitments it means all profits are now committed for probably 4 years. So no dividends for at least 5 years.
All in all. The BoD of BRD have now shown their hand. They only care about their own gains and don’t give a **** about those that invested to help make BRD what it is today.
I think we all await to hear about this £6m loan. If this has just happened this year then there should be £6m in cash for BRD to cover any further work that’s needed to be done. If it happened earlier than this then it should have been reported under AIM rules.
If it’s currently in their coffers then what’s the justification for the fundraiser. The only reason is to deliberately water down the current shareholders to ensure the BoD and their associates gain from any profits (guaranteed doubling of investment) as well as ensuring voting rites at the AGM so they can’t be ousted.
If I averaged down, it's possible. However, all trust I ever had in this tin-pot calamity has been destroyed. As with many AIM shares, what looked like a winner quickly turns to shit, because of poss poor management decisions and pure greed and avarice by the BoD's. Can't see this going anywhere. When I did my research before investing, I read nothing about a £6m debt. Had I known that, I wouldn't have touched it with a stinky barge pole but that's my stupid fault.
But most importantly do you believe you will get your cash back?
This from October '...on 8 October 2018 and included in the notice of meeting will proceed with the nominal value of the Company's ordinary shares in issue reducing from 1 pence to 0.01 pence whilst retaining the same number of shares...'
I'm calming down slowly but next time, I should trust my instinct. Millions being sold in small parcels at an obvious huge loss at the time, MM's walking the sp lower with no justification, previous fund raising for repetitive reasons, a pump before the last raise based on an unexplainable 16 carat and two 8 carat diamonds in what was essentially detritus, the CFO getting another job...it was all there!!!