The chairman and chief executive of BlueRock Diamonds PLC (LON:BRD) have loaned the diamond miner £231,400.
Chairman Paul Beck has lent the company £50,000, while CEO Adam Waugh has put up the remaining £181,400.
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The cash will be put into escrow as a full provision for a claim by former boss Riaan Visser, who claims he is owed money by BlueRock’s subsidiary Kareevlei.
The loan, which bears interest of 11% per annum, is for a period up to three years but can be paid back at any time, subject to certain early repayment fees.
In the event the company raises funds, preference will be given to repaying the loan. BlueRock said it is the board’s intention to repay the loan “as soon as practicable”.
BlueRock shares were down 4.1% to 1p in early afternoon trading.