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BlueRock Diamonds gets liquidation threat against subsidiary lifted

A sum of £230,000 will be put into escrow as a full provision for the claim
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£230,000 has been put escrow

BlueRock Diamonds PLC (LON:BRD) has had the prospect of a winding-up of its main subsidiary lifted after reaching an agreement with former chief executive Riaan Visser.

A sum of £230,000 will be put into escrow as a full provision for the claim by Visser against subsidiary Kareevlei Mining.

READ: Bluerock Diamonds targets increased throughput at Kareevlei in second half

BlueRock repeated its belief the action is without merit but said the decision to make the provision was to remove the uncertainty of a court case.

The liquidation hearing has now been cancelled, but Visser can institute proceedings for the money.

Adam Waugh, chief executive, said: "I am delighted that we have removed the possibility, however remote, that the application for a provisional winding up would be granted. 

"If Mr Visser decides to pursue his claim further it will be dealt with in the course of a normal recovery process and we remain confident, based on legal advice, that his case is without merit."

Several BlueRock’s directors have agreed to lend the company the full £230,000.

Shares rose 12% to 1.15p.

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