TORONTO, Aug. 21, 2017 /CNW/ - Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX: RDI; JSE: RDI) announces that its board of directors have, after engaging with the Toronto Stock Exchange, decided to delist from the TSX and list with the NEX (a separate board of the TSX Venture Exchange) given the status of its South African subsidiaries which are under business rescue.
The Company expects this concurrent delisting and relisting to take place on or about August 31, 2017.
As disclosed previously, the Company had decided in April to seek to delist from the TSX in view of its current market capitalization, and to initiate the application process for listing on the TSXV, however, considering the current status of its South Africa subsidiaries the decision has been made to list on the NEX. The NEX is a separate board of TSX Venture Exchange. It provides a trading forum for listed companies that have fallen below TSX and TSX Venture's ongoing listing standards, or are companies that have low levels of business activity or have ceased to carry on active business.
Trading of RDI shares on the Toronto Stock Exchange and Johannesburg Stock Exchange was halted, pending the outcome of the hearing on the merits of the liquidation application against the Company's three subsidiaries, which has now been postponed to November 3, 2017 in view of the business rescue proceedings. The Company however, remains in full compliance with its securities regulatory requirements.
The business rescue practitioners continue to work towards delivering a business rescue plan on or before September 30, 2017.
About Rockwell Diamonds
Rockwell is engaged in the business of operating and developing alluvial diamond deposits. The Company also evaluates consolidation opportunities that have the potential to expand its mineral resources and production and provide accretive value to the Company.
Rockwell has set a strategic goal to become a mid-tier diamond production company with specific focus on the Middle Orange River region in South Africa.
As at the date of this document, Rockwell's subsidiary in South Africa (Rockwell Resources RSA Pty Limited) and its two subsidiaries (HC van Wyk Diamonds Limited and Saxendrift Mine Pty Limited) were being operated under Business Rescue Management as ordered by the Court, following an application by creditors of the three South African subsidiaries on May 18, 2017.
Rockwell's common shares trade on the Toronto Stock Exchange and the JSE Ltd under the symbol "RDI". Trading of Rockwell's shares remains suspended at the request of 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 the transaction and the ability of each party to satisfy the conditions precedent in a timely manner or at all, 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 as 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.
SOURCE Rockwell Diamonds Inc.
For further information: For further information on Rockwell and its operations in South Africa, please contact Stephen Le Roux, Operation, Manager MOR, +27 (0)82 300 4184; David Tosi, PSG Capital - JSE Sponsor, +27 (0)21 887 9602