Wrap Text
Update on Jasper acquisition
ROCKWELL DIAMONDS INCORPORATED
(A company incorporated in accordance with the laws of British
Columbia, Canada)
(Incorporation number BCO354545)
(Formerly Rockwell Ventures Inc.)
(South African registration number: 2007/031582/10)
Share code on the JSE Limited: RDI ISIN: CA77434W2022
Share code on the TSX: RDI CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
COMPLETION OF JASPER MINE ACQUISITION INCREASES ROCKWELL’S
OPTIONALITY IN MIDDLE ORANGE RIVER REGION
March 20, 2013 Vancouver, BC – Rockwell Diamonds Inc. ("Rockwell" or
the "Company") (TSX: RDI; JSE: RDI) is pleased to announce that it
has, consequent upon the Old Order Mining Rights held by Jasper
having been converted into New Order Mining Rights,(1) completed its
acquisition of the Jasper Mine by settling the purchase consideration
through the issue of shares.
The agreement to acquire the Jasper Mine project, which is contiguous
to Rockwell’s Saxendrift Mine, formed part of the transaction to
unwind the Company’s Black Economic Empowerment (“BEE”) partnership
with Africa Vanguard Resources (“AVR”) (as announced on March 19,
2012):
(1) In order to convert an Old Order Mining Right to a New Order Mining Right
the holder must lodge, amongst other things, a Social and Labour Plan and an
undertaking to expand opportunities for historically disadvantaged persons (HDSA’s)
to enter the mineral industry.
- Jasper acquisition: Rockwell’s application for the New Order Mining
Right at Jasper has recently been approved, triggering the payment by
the Company of R2.0 million (C$221,484) in Rockwell shares listed on
the JSE Limited, to the Jasper shareholders. A total of 533,332
shares were issued at R3.75 (C$0.41) per share, which represents the
5-day volume weighted moving average price at the time that the
agreements were signed in March 2012. The Jasper shareholders have
undertaken not to trade these shares for a period of one year.
- Unwinding of AVR BEE shareholding: A new black economic empowerment
partner, which shares the Company’s vision and is committed to adding
value to Rockwell has been identified. Good progress has been made in
terms of securing external funding to cover purchase consideration by
the new BEE shareholder in order to finalize the unbundling of the
transaction with AVR.
The Company has outlined the way forward for this newly acquired
property. Geological studies to estimate the resources at the Jasper
Mine are well advanced and the Company is on track to release a NI
43-101 compliant technical statement before the end of May 2013.
Initial assessments of the alluvial Jasper deposit suggest that its
production profile may be similar to Saxendrift in terms of quality,
size and value. Accordingly, by processing materials mined from
Jasper at the Company’s Saxendrift Mine, there is the potential to
extend the life of the Saxendrift operation with limited new
investment. The Company is also reviewing the possible construction
of an in field screen at Jasper with projected efficiency benefits
for the overall operating cost structure of the mine.
“The Middle Orange River region, which is known for its large and
high-valued gem-quality diamonds, is a key area of focus for
Rockwell, with the Company targeting a processing capacity of 500,000
m3 per month of quality gravels. The Jasper Mine project is an
important component of this strategy as it provides the potential to
extend the mine life of the contiguous Saxendrift Mine,” explains
James Campbell, CEO, Rockwell Diamonds. “Jasper increases our options
within the Saxendrift Complex to grow our production profile, and
deliver on our forecast recoveries.”
For further information on Rockwell and its operations in South
Africa, please contact
James Campbell
CEO
+27 (0)83 457 3724
Stéphanie Leclercq
Investor Relations
+27 (0)83 307 7587
About Rockwell Diamonds:
Rockwell is engaged in the business of operating and developing
alluvial diamond deposits, with a goal to become a mid-tier diamond
production company. The Company has two operational mines, which it
is progressively optimizing, as well as a third mine, Saxendrift Hill
Complex, which will come into production in the first quarter of
fiscal 2014. Rockwell also has two development projects and a
pipeline of earlier stage properties with future development
potential. The operations are based on high throughput processing
capability and Saxendrift, the flagship mine has among the lowest
unit costs in the industry, as a result of implementing fit for
purpose technologies.
The Company is known for producing large, high quality gem stone
diamonds comprising a major portion of its diamond recoveries and has
a beneficiation joint venture that enables it to participate in the
profits on the sale of the polished diamonds.
Rockwell also evaluates merger and acquisition opportunities which
have the potential to expand its mineral resources and production
profile and would provide accretive value to the Company.
No regulatory authority has approved or disapproved the information
contained in this news release.
Forward Looking Statements
Except for statements of historical fact, this news release contains
certain "forward-looking information" within the meaning of
applicable securities law. Forward-looking information is frequently
characterized by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements.
Factors that could cause actual results to differ materially from
those in forward-looking statements include uncertainties and costs
related to exploration and development activities, such as those
related to determining whether mineral resources exist on a property;
uncertainties related to expected production rates, timing of
production and cash and total costs of production and milling;
uncertainties related to the ability to obtain necessary licenses,
permits, electricity, surface rights and title for development
projects; operating and technical difficulties in connection with
mining development activities; uncertainties related to the accuracy
of our mineral resource estimates and our estimates of future
production and future cash and total costs of production and
diminishing quantities or grades of mineral resources; uncertainties
related to unexpected judicial or regulatory procedures or changes
in, and the effects of, the laws, regulations and government policies
affecting our mining operations; changes in general economic
conditions, the financial markets and the demand and market price for
mineral commodities such and diesel fuel, steel, concrete,
electricity, and other forms of energy, mining equipment, and
fluctuations in exchange rates, particularly with respect to the
value of the US dollar, Canadian dollar and South African Rand;
changes in accounting policies and methods that we use to report our
financial condition, including uncertainties associated with critical
accounting assumptions and estimates; environmental issues and
liabilities associated with mining and processing; geopolitical
uncertainty and political and economic instability in countries in
which we operate; and labour strikes, work stoppages, or other
interruptions to, or difficulties in, the employment of labour in
markets in which we operate our mines, or environmental hazards,
industrial accidents or other events or occurrences, including third
party interference that interrupt operation of our mines or
development projects.
For further information on Rockwell, Investors should review
Rockwell's home jurisdiction filings that are available at
www.sedar.com.
20 March 2013
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 20/03/2013 02:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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