BlueRock Diamonds PLC (LON:BRD) said it has put the “important building blocks” in place to grow the miner following the restart of production at the Kareevlei operation in South Africa earlier this week.
The company said it had negotiated a finance facility that will support sales of rough-cut stones.
A new partnership, meanwhile, will see the precious gems sold in Antwerp, the world centre for the industry, rather than locally.
BlueRock also outlined plans to keep its mining costs down, while operating the open-cast site within the new work regulations.
It also updated on its financial position, stating it has around £1.2mln in cash and liquid assets.
"Our focus remains on the preservation of cash as we work our way through what is a very difficult and uncertain time,” BlueRock chairman Mike Houston said in a statement.
“Although our expansion project is on hold, we recognise that it is still key to unlocking value and are therefore continuing to explore ways to complete this project in 2020.”
In a comprehensive statement, BlueRock told investors its new selling strategy would be aided by a tie-up with Bonas-Couzyn, which will sell the firm’s diamonds through Antwerp. Bonas is the world's longest established diamond brokerage and sold 6.1mln carats in 2019.
A financing deal with the Delgatto Diamond Finance Fund (DDFF) will help bridge the gap between mining and sale of the rough stones.
The outline agreement will see DDFF finance each monthly parcel at 70% of an agreed valuation at a cost of 1.25% per month. BlueRock then has a 12-month option to repurchase the stones at the discounted price and re-sell at market rates.
“We have put important building blocks in place in an effort to de-risk the short to mid-term volatility in the market and to this end I am pleased with the partnerships with Bonas and DDFF, which I believe will add value to the company,” said chairman Houston.
Finally, the company said it taken the decision to keep production costs as low as possible, which means it will reduce development mining, remove contract crushing and freeze employment whilst continuing to manage overheads.
“The company will also benefit for a period from the weaker exchange rate and the material drop in the oil price,” BlueRock added.