(Alliance News) - BlueRock Diamonds PLC said Tuesday it has raised GBP1.9 million via an oversubscribed placing and subscription of 2.2 million new shares at a price of 85 pence each.
BlueRock Diamond shares were trading 9.0% lower in London at 88.75 pence each on Tuesday afternoon.
The AIM-listed diamond mining company said the proceeds will primarily be used to "fast-track a doubling of production" at Kareevlei diamond mine in the Kimberley region of South Africa and "to reduce unit costs significantly."
Executive Chair Mike Houston said: "Thanks to this placing, BlueRock can fast-track a material increase in production volumes from the 323,000 tonnes achieved in 2019 to a run rate of 750,000 tonnes per annum and a consequent expected increase in carats to over 30,000 by the end of 2020."
"Furthermore, we are optimising profitability through reducing unit costs by investing in infrastructure and the benefit of the much improved economies of scale; to this end, our target is to reduce cost per carat by approximately USD50," Houston said.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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