BlueRock Diamonds PLC (LON:BRD) has raised £626,000 from a placing and subscription of just over 208mln shares at a price of 0.3p each. One warrant will also be issued for each new share, at a price of 0.4p.
In addition, directors of BlueRock will subscribe for a further £85,000 at the placing price via the issue of a further 28.3mln new shares.
BlueRock will use the money to open up KV1 and KV2, two of the five kimberlite pipes it is currently mining at the Kareevlei project.
The idea is that it will be able to supply approximately 40,000 tonnes per month of ore to its processing plant by the third quarter of next year.
The company's long-term aim is to optimise the resource available and increase the production to around 500,000 tonnes per year, Kareevlei a life of mine of approximately 10 years from KV1, KV2 and KV3.
BlueRock will also be strengthening its operational management team to oversee the move to a continuous mining operation.
The company's average grade from all of its mining operations to date is 2.6 carats per hundred tonnes.
The company has also appointed Michael Houston as non-executive chairman. Houston is a mining veteran with over 30 years' experience in Africa, having worked with companies including Anglo American, Shanta Gold, and Zimplats.