Aim-listed BlueRock Diamonds has reached an agreement with former CEO Riaan Visser that his application for the liquidation of Kareevlei Mining be removed from the court roll, subject to security being provided for the full amount of his alleged claim of about £230 000.
Accordingly, the provisional liquidation hearing scheduled for August 10 was cancelled.
The security is expected to be in place on or around August 13.
“The company has taken this prudent action on the advice of its lawyers because, while the board was confident that, had the hearing proceeded, it would have been successful, it is impossible to be entirely confident of success in this or indeed any other court process,” BlueRock noted in a statement on Friday.
"I am delighted that we have removed the possibility, however remote, that the application for a provisional winding up would be granted. If Visser decides to pursue his claim further, it will be dealt with in the course of a normal recovery process and we remain confident, based on legal advice, that his case is without merit," CEO Adam Waugh said.
Certain of the company's directors have agreed to nonbinding heads of terms to lend BlueRock the full amount needed as security.