LONDON (Alliance News) - BlueRock Diamonds PLC said it has increased its convertible loan notes with its biggest shareholder Mark Poole by GBP400,000.
The diamond mining company said that it will draw down the full amount immediately in order to finance its continuing operations and expansion plans.
The loan notes expire on October 16, 2019 and benefit from a charge over the company's interest in Kareevlei Mining (Pty) Ltd. If BlueRock disposes of its interest in Kareevlei then the charge will be released subject to early repayment of the loan notes at a premium of 20%.
The loan notes are convertible at a conversion price of 11 pence.
BlueRock said on Wednesday that it intended to increase the loan notes after operational difficulties depleted its cash balance.
BlueRock's total loan notes with Poole are now worth GBP850,000.
Shares in BlueRock were untraded on Friday, last quoted at 18.00 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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