BlueRock’s Mining Unit Enters Business Rescue
BlueRock Diamonds is unsure of its future after its main subsidiary entered a legal process aimed at rehabilitating a financially distressed company.
Kareevlei Mining, which runs operations at BlueRock’s Kareevlei deposit in South Africa, has been placed into business rescue, the country’s equivalent of Chapter 11, according to a February 24 filing with the London Stock Exchange (LSE).
The miner has asked that trading of its shares on the Alternative Investment Market (AIM), part of the LSE, be suspended due to the financial uncertainty, it explained.
BlueRock has been experiencing financial difficulties for the past few years because of a long-term shutdown due to Covid-19, as well as extreme rainy conditions that delayed the commissioning of a new plant and the opening of the main pit. In July, the miner signed a financing deal with Teichmann Company that saw the investor become a major shareholder, after running out of money to continue operating the site. Teichmann CEO Victor Dingle replaced Mike Houston as CEO of BlueRock in September.
Image: Rough diamonds. (BlueRock Diamonds)