LONDON (Alliance News) - BlueRock Diamonds PLC Wednesday said it achieved a better than expected price for the carats retrieved during trial mining at the Kareevlei project in South Africa and said it has drawn-down the last GBP50,000 of convertible loan notes for working capital.
The diamond miner focused on South Africa said it produced 575 carats during the trial mining period at the Kareevlei project, which ended in November and resulted in the carats being sold for an overall total of USD142,995.
BlueRock said although the amount of carats sold was "relatively small", it argued that the average price per carat of USD248 achieved represents a 36% increase compared to the USD183 per carat that was anticipated and forecast in the competent persons report, it said in a statement.
BlueRock said it also conducted further blasting in the K1 and K2 pits at the project in December, resulting in 50,000 tonnes of kimberlite being removed and stockpiled, which is now ready to be processed.
Following the trial mining, the company utilised funds from its biggest shareholder, Mark Poole, who agreed to buy up to GBP450,000 in new convertible loan notes, in order to purchase new equipment. The equipment was for the plant at the project, which has now been installed, and said it will be testing the plant over the next two weeks.
"The company has now completed installation of the new equipment, will be configuring and testing the plant over the next two weeks and expects that the plant should be operating by the end of April 2015," said BlueRock.
Of the GBP450,000 of convertible loan notes, BlueRock immediately drew-down GBP400,000 for the new equipment. On Wednesday, the company said it has now exercised the option to draw-down the remaining GBP50,000, which will be used for general working capital.
BlueRock shares were up 8.3% to 13.00 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.