Rockwell provides third update regarding three subsidiaries in Kimberley, South Africa
VANCOUVER, May 2, 2017 /CNW/ - Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX:RDI; JSE:RDI) provides an update to the interim liquidation orders brought by C-Rock Mining Limited (''CML'') 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 their powers have now been suspended in view of further filings by the Company regarding business rescue. Accordingly, they all remain under the operating control of the Company.
In that respect, the Company confirms that the Wouterspan plant is now in the ramp up stage after commissioning. Last week, one of the diamonds recovered was a 60 carat stone which sold for USD $8,000 per carat.
The Company appeared before Judge CC Williams again on Wednesday, April 26 in the Kimberley High Court. The only issue at hand in the hearing was the application by the Company to bring the June 22 hearing date forward to as early as possible, in order to have the merits of the Company's liquidation application rebuttals adjudicated. These rebuttals were outlined in the Company's press release of April 12, 2017.
Judge Williams made it clear that urgency was no longer a consideration, in view of the business rescue filings, and that the hearing date remains June 22, 2017. The business rescue hearings are currently scheduled for May 12, 2017.
While the judgement is not what the Company sought, Judge Williams reaffirmed the principle that business rescue suspends both the powers of the provisional liquidators and the liquidation process, effectively allowing the Company's subsidiaries to carry on business. On this basis, there is no pressing practical need to bring the final hearing date in the liquidation proceedings forward.
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 andtotalcostsof 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.
SOURCERockwell Diamonds Inc.
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