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Rockwell sells non-core Tirisano Project for a cash consideration of $6.3 million and provides an update on its Midd
Rockwell Diamonds Inc.
(A company incorporated in accordance with
the laws of British Columbia, Canada)
(Incorporation number BCO354545)
(South African registration number: 2007/031582/10)
Share code on the JSE Limited: RDI
ISIN: CA77434W2022 Share code on the TSXV: RDI
CUSIP Number: 77434W103
("Rockwell" or "the Group")
Rockwell sells non-core Tirisano Project for a cash consideration of $6.3 million and provides an update
on its Middle Orange River exploration activities
__________________________________________________________________________________________
March 30, 2015, Vancouver, BC – Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX: RDI; JSE: RDI)
announced today that it has reached an agreement to sell its non-core Tirisano Project (“Tirisano”) in the North
West Province of South Africa for a cash consideration of $6.3 million (Note 1). The Company is also pleased to
provide an exploration update for the Middle Orange River (“MOR”) region.
Note 1: In addition, the buyer will assume $3.5m in debt and related environmental liabilities
Disposal of Tirisano Project
Tirisano, located in the North West province some 500 kilometres from the Company’s Middle Orange River
operations, was identified some time ago as a non-core asset and a sale process was initiated. Tirisano was
placed on care and maintenance in December 2012 and subsequently royalty contract miners were brought in to
continue mining operations on the property. During the subsequent period the contract mining operations
processed an average of 160,000m3 per month producing between 1,500 and 2,000 carats per month. Rockwell’s
12.5% royalty on the sale of the diamonds was applied to the care and maintenance costs of the property and a
portion of the overheads.
After evaluating a number of proposals as part of the sale process, the Company reached an agreement with a
consortium made up of the royalty miners (“the Consortium”), who have operated at Tirisano for the past two
years. The Consortium will acquire the entire issued share capital, together with claims on loan account in
Rockwell’s 100% owned subsidiary, Etruscan Diamonds Pty (Ltd) including the Tirisano mining right and its
associated infrastructure, for a cash consideration of $6.3 million (ZAR 60 million) (“the Transaction”). The
Consortium will therefore assume debt owed by Etruscan amounting to $3.5 million (R34 million) and the related
environmental liabilities. The cash consideration will be settled by way of two initial payments totaling $2.1 million
(ZAR 20 million), one in March and the second in April 2015, followed by 20 equal monthly instalments of $0.21
million (ZAR 2 million). The proceeds will be used to fund Rockwell’s general working capital and investments
related to acquisitions, additional exploration and ongoing development of the portfolio of mining and mineral
rights.
The Transaction is subject to conditions precedent, including customary regulatory approvals.
MOR exploration update
As reported on March 9, 2015, Rockwell is expanding its exploration activities in the MOR, initially focusing on the
Lanyonvale and contiguous Wouterspan properties. Both are considered to have significant potential to add to the
Company’s resources.
- At Lanyonvale, initial work will focus on the evaluation of the Rooikoppie Exploration Targets with potential
resources of 3 to 4 million m3 of gravel, followed by fluvial alluvial Exploration Targets with potential for 1 to 2
million m3 of gravel. Completion is targeted for the end of October 2015.
- At Wouterspan, further pitting of the Rooikoppie gravels at a tighter grid spacing is planned with the intention
of converting the initial estimates to Indicated Resources by February 2016.
Commenting on the Tirisano disposal and exploration update James Campbell, CEO and President said:
“The sale of Tirisano, which has been identified as non-core for some time, will allow us to focus entirely on our
growth objectives in the MOR and our stated intention of exceeding our 500,000m3 per month processing target.
Our short-term priority is the completion of the acquisition and integration of the Remhoogte/Holsloot Project into
our current business. We are also progressing with our exploration programme to increase Rockwell’s resources
and mining flexibility. We intend developing 3 to 4 million m3 of Rooikoppie Exploration Targets at Lanyonvale
and will be carrying out further pitting of the Rooikoppie gravels at Wouterspan with the goal of growing
Rockwell’s profitable operational base for the future.”
All dollar figures stated herein are expressed in Canadian dollars, unless otherwise specified.
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
David Tosi PSG Capital – JSE Sponsor +27 (0)21 887 9602
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’s flagship mine is the Saxendrift Mine, in the
MOR. It has recently built two new internally funded operations in the MOR region, namely Saxendrift Hill
Complex and Niewejaarskraal. Rockwell also has a development project and a pipeline of earlier stage properties
with future development potential. The operations are based on high throughput processing capability and
Saxendrift 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 gemstone comprising a major portion of its diamond
recoveries that is enhanced through a beneficiation joint venture that enables it to participate in the profits on the
sale of the polished diamonds.
Rockwell also evaluates consolidation opportunities which have the potential to expand its mineral resources and
production profile and to 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 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 if 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.
Date: 30/03/2015 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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