BlueRock Diamonds announced on Friday that it anticipates exiting administration through a dissolution process, and its nominated advisor has resigned.
Earlier in June, the London-listed diamond producer made the decision to enter administration while operations at the Kareevlei Diamond Mine in South Africa remained suspended.
Initially, joint administrators Allister Manson and Trevor John Binyon sought to rescue the company through a company voluntary arrangement (CVA). However, following extensive correspondence with Kareevlei Mining, the proposed purchaser of BlueRock’s shares, the CVA option will no longer be pursued. Instead, the company has put forward a proposal to exit administration through dissolution.
BlueRock revealed that the administrators have suggested selling its assets to a party associated with the company. While no formal offers have been received yet due to the ongoing marketing process, there has been interest from a connected party regarding the purchase of subsidiary shares.
In the coming days, the administrators will appoint an independent valuation and asset agent to determine the value of the company’s assets. They will then proceed to dispose of these assets utilizing the most advantageous method available.
Trading of BlueRock shares is currently suspended. The nominated advisor, SP Angel Corporate Finance, has immediately stepped down. According to AIM Rules, if a new nominated advisor is not appointed within one month, BlueRock’s trading admission will be cancelled.
- Joe Hoppe