JOHANNESBURG (miningweekly.com) – Aim-listed BlueRock Diamonds has entered into an agreement with substantial shareholder Mark Poole to issue £400 000 of convertible loan notes (CLNs), allowing it to finance continuing operations and expansion plans.
The CLNs would expire on October 16, 2019, carried a zero coupon, were not listed and benefited from a charge over the company's interest in Kareevlei Mining, in the Northern Cape. If BlueRock disposed of its interest in Kareevlei Mining, the charge would be released subject to early repayment of the CLNs at a premium of 20%.
The CLNs would be convertible at the holder's option at any time up to the end of the term into ordinary shares of 1p each in the capital of BlueRock at a conversion price of 11p.
Following the expected extension of the CLNs by £400 000, the amount outstanding would be £850 000.