Transfer of Mining Right

RNS Number : 4462K

BlueRock Diamonds PLC

25 June 2014

 



BlueRock Diamonds plc ("BlueRock" or the "Company")

Transfer of Mining Right

25 June 2014

The Board of BlueRock Diamonds plc (AIM: BRD) is pleased to announce that the requisite Ministerial Consent in terms of section 11(1) of the South African Mineral and Petroleum Resources Development Act, 2002 ("MPRDA") has been granted for the transfer of the Mining Right over the Kareevlei Tenements from Diamond Resources (Pty) Limited ("Diamond Resources") to Kareevlei Mining (Pty) Limited ("Kareevlei Mining"), BlueRock's 74 per cent. subsidiary. The Mining Right is expected to be registered to Kareevlei Mining in the Mining Titles Office shortly.

Following Admission in September 2013, pending the grant of the aforesaid Ministerial Consent, Kareevlei Mining conducted the Trial Mining Operations under the terms of the Mining Agreement (as amended by the Supplemental Agreement). Completion under the Mining Agreement was accordingly subject to obtaining that Ministerial Consent.

BlueRock paid a non-refundable fee of R150,000 to Diamond Resources on 30 April 2013 under the terms of the Kareevlei Option Agreement and a further R850,000 (then approximately £55,000) in trust to Diamond Resources' solicitors pending transfer of the Mining Right. These funds in trust will be released to Diamond Resources upon registration of the transfer of the Mining Right to Kareevlei Mining at the Mining Titles Office. In addition, Kareevlei Mining will be obliged to provide a bank guarantee to the Department of Mineral Resources in South Africa ("DMR") in an amount still to be determined in order to procure release of Diamond Resources' present rehabilitation guarantee of R360,000.

Since Admission, Kareevlei Mining has been entitled for its own account and benefit to conduct the Trial Mining Operations on the Kareevlei Tenements within defined limits under the Supplemental Agreement. All diamonds recovered pursuant to such Trial Mining Operations may be dealt with by Kareevlei Mining as it chooses, subject to paying Diamond Resources a commission of one per cent of gross sales after State royalties.

All meanings, unless otherwise stated, bear the same meaning as those in the Company's Admission Document dated 19 August 2013.

Enquiries:

BlueRock Diamonds plc

Riaan Visser, CEO

www.bluerockdiamonds.co.uk     

[phone]

SP Angel Corporate Finance LLP

Nominated Adviser & Broker

David Facey / Katy Birkin / Liz Yong                    

[phone]

 

END

 

 

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