Wrap Text
Extends and amends convertable loan with Daboll
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
ROCKWELL EXTENDS AND AMENDS CONVERTIBLE LOAN AGREEMENT WITH DABOLL
CONSULTANTS LTD.
June 26, 2013 Vancouver, BC – Rockwell Diamonds Inc. ("Rockwell" or
the "Company") (TSX: RDI; JSE: RDI) announces that it has executed an
addendum with its principal shareholder, Daboll Consultants Ltd.,
which extends and amends the parties’ June 2, 2011 US$2 million
convertible loan agreement (“Loan”).
The Loan repayment date was extended by two years to June 2, 2015 and
the conversion right has been amended so that the Loan is convertible
at the prevailing market price of the Company’s shares over its 2
year remaining term with a floor price of C$0.16 per share (maximum
12,235,686 shares) provided that the Loan may be converted into no
more than 10% of the Company’s share capital as of the date of
conversion unless a larger number of shares has been authorized by a
prior vote of disinterested Rockwell shareholders. Rockwell has
agreed to solicit such disinterested shareholder approval at its July
26, 2013 annual and special shareholders meeting. The addendum also
extends the current diamond marketing and beneficiation agreements
with Daboll’s affiliate Steinmetz Diamonds until 2018. This
conversion option in the amending addendum is subject to the
acceptance of the Toronto Stock Exchange and JSE Limited as of the
date hereof.
“This extension reinforces our long standing partnership with
Steinmetz Diamonds, both as our strategic marketing partner and
Rockwell’s largest shareholder,” explains Rockwell President and CEO
James Campbell. “The strength of this partnership stems from our
unique positioning in the diamond industry: Rockwell produces large,
high valued investment diamonds and Steinmetz Diamonds focuses on
beneficiation and sales in this segment. The majority of our
production profile comprises the rare investment grade rough diamonds
that Steinmetz Diamonds is renown for polishing and marketing at the
high end. Both parties have derived significant value from this
partnership to date and we are confident that it will continue to add
value going forward.”
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 which will come
into production in the first quarter of 2013. 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.
26 June 2013
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 26/06/2013 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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