VANCOUVER, Sept. 15 /CNW/ - Pala Investments Holdings Limited ("Pala")
today announced that Rockwell Diamonds Inc. ("Rockwell", TSX: RDI, JSE: RDI,
OTCBB: RDIAF) denied Pala the right to vote its 42,966,900 common shares of
Rockwell at the Company's annual general meeting (the "AGM") held today in
Representatives of Pala attended the AGM and were denied the opportunity
to vote Pala's common shares by the chairman, even though Pala and its agents
had taken all required steps well in advance of the meeting to ensure its
right to vote. The actions taken by Pala were consistent with and based upon
the disclosure of the voting process contained in the management information
circular of Rockwell that was mailed to shareholders in connection with the
"This is another example of the management of Rockwell seeking to
entrench their position, and not taking seriously their duties to their
shareholders and their legal obligations," said Jan Castro, Managing Director
of Pala Investments AG, advisor to Pala.
The chairman of the meeting announced at the AGM that approximately 15%
of the common shares were represented in person or by proxy at the AGM. Had
Pala's votes been recognized, Pala's votes would have represented the majority
of votes that would have been cast at the meeting.
"It was never our intent to replace the board of Rockwell. What is clear
is that if our votes had been recognized, the board would have been reinstated
with less than a majority of shareholders represented at the AGM voting in
favour. We think that speaks volumes about the level of shareholder support
for this board," concluded Mr. Castro.
Pala has not excluded any legal recourse that is open to it, including
seeking regulatory intervention.
Pala, thorough a wholly-owned subsidiary, on September 9, 2008 commenced
an offer to acquire 100% of the common shares of Rockwell. Complete
information about the offer can be obtained by referring to the offer and
take-over bid circular filed with Canadian securities regulators.
Pala Investments Holdings Limited, based in Jersey, Channel Islands, is a
US$1.2 billion multi-strategy investment company with a particular focus on
mining and natural resource companies in both developed and emerging markets.
Pala Investments' exclusive investment advisor, Pala Investments AG, is a
Switzerland-based team with extensive experience within the mining and natural
resource sectors. Pala Investments seeks to assist companies in which they
have long-term shareholdings by providing strategic advice and innovative
For further information:
For further information: John Lute, Lute and Company, (416) 929-5883