Rockwell provides further update regarding interim liquidation orders against three subsidiaries in South Africa
21 Apr, 2017, 10:24 ET
VANCOUVER, April 21, 2017 /CNW/ - Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX:RDI; JSE:RDI) provides a further update to the interim liquidation orders against three subsidiaries of the Company issued by a judge in Kimberley, South Africa on March 23, 2017. The interim orders, which have yet to be confirmed in a final hearing which will include adjudication of the merits of the application and which has not happened to date, include Rockwell Resources RSA (Pty) Ltd (Rockwell RSA), HC van Wyk Diamonds Ltd (HC van Wyk) and Saxendrift Mine (Pty) Ltd (Saxendrift). Interim liquidators have been appointed by the Master of the High Court in accordance with requisitions by the major creditors, but have not taken control of the subsidiaries in view of further filings by the Company. Accordingly, the subsidiaries remain under the operating control of the Company.
On March 31, 2017, the Company filed a motion with the court in Kimberley, South Africa on an urgent basis to bring the date forward to consider the merits of the liquidation case brought by C Rock Mining. At the time the interim liquidation order was issued, the date for the final hearing was originally scheduled for June 22, 2017. The application for urgency was postponed to be heard on April 19, 2017; however, C Rock Mining filed a rebuttal affidavit against the Saxendrift affidavits late in the afternoon on April 18, 20. The Company interprets that late filing by C Rock Mining as a clear attempt by C Rock Mining to continue to delay matters as they had a month to respond to the affidavits on all three subsidiaries, but delayed in doing so, until the afternoon before the scheduled hearing thus precluding the Company's ability to respond in time. The date to hear the urgency application is now set down for April 26, 2017. The Company will be filing a rebuttal affidavit to C Rock Mining's latest filing before such date. The Company is advised that the hearing next week is only to set a date for the court hearing on the merits, and that such date is expected to be set down for early in May.
In addition, the Company has also advised the Toronto Stock Exchange that, in view of its current market capitalization, it will apply for a listing on the TSX Venture Exchange. Assuming approval, the Company will then seek to delist from the TSX, and concurrently list on the TSX Venture Exchange. The Company has initiated that TSX(V) application process today. Although the Company's shares are not cease traded by securities regulators, trading on the Toronto Stock Exchange and Johannesburg Stock Exchange remains halted, while there remains uncertainty over the outcome of the hearing on the merits of the liquidation application against the Company's three subsidiaries. Assuming acceptance of the Company's application by the TSX(V), the Company will also work with the Johannesburg Stock Exchange to confirm its listing accordingly.
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 profile and provide accretive value to the Company.
Rockwell is known for producing large, high quality gemstones comprising a major portion of its diamond recoveries. This is enhanced through a beneficiation joint venture that enables Rockwell to participate in the profits on the sale of the polished and certain re-traded diamonds, which are not beneficiated.
Rockwell has set a strategic goal to become a mid-tier diamond production company. In pursuit of this goal the Company has embarked on a strategy to grow its Middle Orange River ("MOR") operational base and minimise production and recovery volatility by setting a medium term target to process 500,000m3 of gravels per month from its MOR operations.
Rockwell's common shares trade on the Toronto Stock Exchange and the JSE Limited under the symbol "RDI".
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: on Rockwell and its operations in South Africa, please contact: Tjaart Willemse, Chief Executive Officer, +27 (0)83 407 1063; David Tosi, PSG Capital - JSE Sponsor, +27 (0)21 887 9602
Share this article