Bleak Future for BlueRock Diamonds
April 13, 23
(IDEX Online) - The future for BlueRock Diamonds, the British miner that operates the Kareevlei mine, in Kimberley, South Africa, looks bleaker than ever.
The company says it is unlikely that it will continue as a going concern. In February it suspended trading in its shares after its debt-ridden subsidiary Kareevlei Mining. which operates the mine, was placed in business rescue.
"The board has explored numerous options to minimise the potential loss to stakeholders," the company said on Tuesday.
"In the absence, however, of any distribution from Kareevlei or new capital being raised it is unlikely that the company can be considered to be a going concern."
BlueRock directors have told business rescue practitioners they can't contribute any further funding to help recapitalize the operations.
Three parties have expressed an interest in acquiring the Kareevlei mine.
Pic of Kareevlei processing plant courtesy BlueRock