Kareevlei Mining in Business Rescue
March 02, 23
(IDEX Online) - British miner BlueRock Diamonds has put its Kareevlei Mining subsidiary into business rescue amid mounting debts.
It follows the suspension of its shares on the AIM last week.
Kareevlei Mining currently owes $4.1m to Teichmann South Africa, the construction and mining service group, though it said it had paid its February salaries and diesel bill.
Business rescue temporarily protects the company from legal action.
Johannesburg-based Engaged Business Turnaround is helping the company draw up rescue plans.
Last April and May processing production at the mine was cut by over a third because of unexpectedly high rainfall. Kareevlei CEO Meiring Burger stepped down in July.
But in a trading update last month it said it was now back to normal production levels.
We have again approached BlueRock for comment.