| Thu 27 Mar 2008, 14:30 | | RDI - Rockwell Diamonds Inc. Assumes 74% Ownership Of H C Van Wyk Diamonds |
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RDI
RDI
RDI - Rockwell Diamonds Inc. Assumes 74% Ownership Of H C Van Wyk Diamonds
Limited And Klipdam Diamond Mining Company Limited
ROCKWELL DIAMONDS INCORPORATED
(A company incorporated in accordance with the laws of British Columbia, Canada)
(Incorporation number BCO354545)
(Formerly Rockwell Ventures Inc.)
(South African registration number: 2007/031582/10)
Share code on the JSE Limited: RDI ISIN: CA77434W1032
Share code on the TSX: RDI CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
("Rockwell")
ROCKWELL DIAMONDS INC. ASSUMES 74% OWNERSHIP OF
H C VAN WYK DIAMONDS LIMITED and KLIPDAM DIAMOND MINING COMPANY LIMITED
March 27, 2008, Vancouver - Rockwell Diamonds Inc. ("Rockwell" or the "Company")
(TSX: RDI, JSE: RDI; OTCBB: RDIAF) wishes to announce that it has taken
ownership of 74% of H C Van Wyk Diamonds Limited and Klipdam Diamond Mining
Company Limited (collectively referred to as "VWDG") effective March 01, 2008.
Pursuant to an agreement originally announced in June 2006 with Durnpike
Investments (Pty) Limited, its listing on the Johannesburg Stock Exchange end
November 2007, and the recent issue of Rockwell shares to H C Van Wyk, Rockwell
has now assumed ownership of 74% of its underlying VWDG assets.
VWDG is the holder of the mineral rights and operator of three alluvial mining
operations located at Wouterspan on the Middle Orange River, and at Holpan, and
Klipdam north of Kimberley in the Northern Cape Province of South Africa. VWDG
also holds the rights to the Makoenskloof bulk sampling project on the Middle
Orange River, and other mineral rights that host diamond bearing gravel deposits
in the Northern Cape Province of South Africa.
The initial acquisition of VWDG in late 2006 was structured as a part cash (to
earn a controlling 51%), and part share (to acquire an additional 23%)
transaction, enabling Rockwell to achieve an overall interest of 74%. The
balance, an effective 26% interest, is being acquired by its empowerment partner
under the terms of South Africa`s Minerals and Petroleum Resources Development
Act.
Due to foreign exchange controls imposed by the South African Reserve Bank
("SARB"), the issue of shares to H C Van Wyk to finalize the acquisition of VWDG
could only occur once Rockwell had completed its JSE inward listing. The terms
of the original transaction structure involving the inward listing of Rockwell
onto the JSE, the appropriate Exchange Agreement being concluded, and the
concomitant issue of shares to H C Van Wyk according to TSX and JSE rules have
now been fulfilled.
Rockwell President and CEO, John Bristow commented "The achievement of 74%
ownership of H C Van Wyk Diamonds Limited and Klipdam Diamond Mining Company
Limited is positive in the sense that Rockwell and its shareholders now accrue
74% of the revenue stream. The operations held in this key subsidiary continue
to produce an exceptional range of gem diamonds with tender sales over the past
14 months yielding sales prices that rank amongst the highest value rough
diamonds in the world. Hence, this is another important step in the Company`s
strategy to acquire and expand its ownership of producing diamond assets,
transforming Rockwell into a mid-tier diamond producer with a focus on unique
high value gemstones."
For further details on Rockwell Diamonds Inc., please visit the Company`s
website at www.rockwelldiamonds.com or contact Investor Services at (604) 684-
6365 or within North America at 1-800-667-2114.
John Bristow
President and CEO
No regulatory authority has approved or disapproved the information contained in
this news release.
Forward Looking Statements
This release includes certain statements that may be deemed "forward-looking
statements". Other than statements of historical fact all statements in this
release that address future production, reserve or resource potential,
exploration drilling, exploitation activities and events or developments that
each company expects are forward-looking statements. 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 market
prices, exploitation and exploration successes, changes in and the effect of
government policies regarding mining and natural resource exploration and
exploitation, availability of capital and financing, geopolitical uncertainty
and political and economic instability, and general economic, and market or
business conditions. Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or developments may
differ materially from those projected in the forward-looking statements. For
more information on Rockwell, Investors should review Rockwell`s annual Form 20-
F filing with the United States Securities and Exchange Commission at
www.sec.com and the Company`s home jurisdiction filings that are available at
www.sedar.com.
Johannesburg
27 March 2007
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 27/03/2008 14:30:01 Produced by the JSE SENS Department.
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