LONDON (Alliance News) - BlueRock Diamonds PLC Friday said its biggest shareholder, Mark Poole, has agreed to buy up to GBP450,000 in new convertible loan notes, funds BlueRock said it will invest in new plant and equipment to upgrade the existing facility.
Mark Poole currently holds a 16.8% shareholding in BlueRock, with 5.3 million shares. The new loan notes can be converted into shares at 11 pence per share, meaning a full conversion would result in Poole receiving an additional 4.1 million shares, raising his stake to just under 30%.
The UK-based diamond mining company said it will draw down GBP400,000 immediately, while the remaining GBP50,000 can be drawn down at any time before the second anniversary of initial subscription, meaning by October 2016.
"The board is confident that the current plans will enable us to reach commercial, profitable production and will over time enable us to commence production of the other pipes at the Kareevlei Tenements," the company said in a statement.
The company said has started ordering the equipment required for the upgrade and expects to start installing the equipment during the December shutdown period, so that the new plant can already be operating in the first quarter of 2015.
"In the interim period, the company will continue to process stockpiled material with the existing plant until the end of November 2014," it said.
BlackRock Diamonds was untraded Friday morning at 11.50 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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