19 Sep 2014 07:00
BlueRock Diamonds plc ("BlueRock" or the "Company")
Completion of Mining Right transfer
19 September 2014
Further to the announcement made on 25 June 2014, the Board of BlueRock Diamonds plc (AIM: BRD) is pleased to announce that following receipt of the requisite Ministerial Consent in terms of section 11(1) of the South African Mineral and Petroleum Resources Development Act, 2002, the Mining Right has now been registered to Kareevlei Mining (the Company's 74 per cent. held subsidiary) in the Mining Titles Office and R850,000 (approximately £55,000 at the time of Admission) has now been released to Diamond Resources.
Kareevlei Mining will be obliged to provide a bank guarantee to the Department of Mineral Resources in South Africa ("DMR") in order to procure release of Diamond Resources' present rehabilitation guarantee which is currently R360,000 (approximately £20,000).
Since Admission, Kareevlei Mining has been entitled for its own account and benefit to conduct Trial Mining Operations on the Kareevlei Tenements within defined limits under the Supplemental Agreement. All diamonds recovered pursuant to such Trial Mining Operations may be dealt with by Kareevlei Mining as it chooses, subject to paying Diamond Resources a commission of one per cent of gross sales (after State royalties) of diamonds recovered to 24 June 2014.
Following transfer of the Mining Right to Kareevlei Mining on 24 June 2014, no commission will be payable to Diamond Resources on diamonds recovered after that date and save for the provision of the bank guarantee as described above, Kareevlei Mining has no further obligations under the Supplemental Agreement.
All meanings, unless otherwise stated, bear the same meaning as those in the Company's Admission Document dated 19 August 2013.
Enquiries:
BlueRock Diamonds plc
Riaan Visser, CEO
www.bluerockdiamonds.co.uk
+27 (0) 84 431 0118
SP Angel Corporate Finance LLP
Nominated Adviser & Broker
David Facey / Katy Birkin / Liz Yong
+44 (0) 20 3463 2260