BlueRock will be using the funds to implement a new mining plan at its Kareevlei mine in South Africa's Kimberley region to increase production and, it hoeps, become cash flow positive.
The placing of 937 million ordinary shares at 0.1p per share raised £937,000 before expenses. It included included the issue of one warrant for every one placing share at an exercise price of 0.2p, valid for two years.
Another £45,000 was raised via threen directors and one past director subscribing for a further 45 million shares at 0.1p/share.
Investors weren't pleased with the move, with BlueRock's shares (AIM:BRD) dropping 41.46% Thursday after the news to 0.12p.
Mike Houston subscribed for 15 million shares, David Facey for 10 million and Gus Simbanegavi for 5 million, bringing their shareholding in BlueRock to 0.92%, 1.43% and 0.31%, respectively.
Former director Paul Beck also subscribed for 15 million shares.
The BlueRock board also approved the issue of 6.8 million shares to Adam Waugh in line with repayment terms of the Waugh loan.
The funds should allow BlueRock to reach its medium-term goal of processing over 400,000 tonnes per annum of ore. The guidance for 2019 is 280,000-330,000t.
The new mining plan includes opening up and developing other pipes in order to provide flexible mining; final modifications to the crushing circuit; and improvements in material flow to ensure consistent supply of ore to the processing plant.
It also includes investment in essential stock of spares to minimise the disruption of breakdowns and in further infrastructure to minimise the disruption of wet weather.
The board also believed BlueRock will move into profitability in the second half of the year, with it being able to self-fund going forward.