BlueRock be placed in administration
BlueRock Diamonds (BRD), which owns and operates the Kareevlei Diamond Mine (Kareevlei) in the Kimberley region of South Africa, announces the following update. The Business Rescue Practitioners have confirmed that the mining license for Kareevlei was renewed, subject to the fulfilment of conditions which are expected to be completed shortly. Operations at the mine remain suspended and negotiations are in progress for the restructuring of Kareevlei.
Further discussions with the Business Rescue Practitioners have noted that as BlueRock is a non-independent creditor of Kareevlei it would only receive a potential distribution after the payment of Post Commencement Finance and it is doubtful that there will be cash to service the unsubordinated claim at that point. A final distribution to BlueRock from Kareevlei is, therefore, now considered unlikely.
The Board engaged further with the major shareholder and the Business Rescue Practitioners about the possible purchase of the BRD claim and decided that it is in the best interests of the Company and all its stakeholders that BlueRock be placed in administration, while there is further engagement with the Business Rescue Practitioners.
The Board filed a Notice of Appointment of Administrators in respect of the Company in the English High Court. As a result, Allister Manson and Trevor Binyon, of Opus Restructuring LLP were appointed Joint Administrators of the Company, effective 15h48 (BST) on 5 May 2023. Trading in the Company’s shares on AIM will remain suspended and further announcements will be made in due course as appropriate.
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