| Mon 15 Jun 2009, 8:59 | | RDI - Rockwell - Executive Directors Cite Strong Fundamentals In Final |
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RDI
RDI
RDI - Rockwell - Executive Directors Cite Strong Fundamentals In Final
Appeal For Support
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 EXECUTIVE DIRECTORS CITE STRONG FUNDAMENTALS IN FINAL APPEAL FOR
SUPPORT
June 12, 2009, Vancouver, BC - The Executive Directors of Rockwell Diamonds
Inc. (TSX: RDI; JSE: RDI; OTCBB: RDIAF) today made a final appeal for voting
support and reiterated their belief that Rockwell shareholders will see
through Pala Investment Holdings Limited`s thinly disguised cashless take-
over and understand that there is a hidden agenda. The Executive Directors
trust that shareholders understand the fundamental strengths of Rockwell`s
business and will not turn over control to Pala`s hand-picked nominees in
order to give them a mandate to dismantle shareholder protections.
John Bristow, CEO and an Executive Director, commented
"Shareholders will take comfort when we formally file updated independent
geological reports within the next 45 days. These reports will show that
management continues to technically define and upgrade resources replacing
mined resources. The Company`s overall mineral resources have remained mostly
unchanged even after 2008 mining at Wouterspan, Holpan, Klipdam and
Saxendrift, while resources in the indicated category at Holpan/Klipdam
showed a 100% increase as a result of confirmatory drilling early in the
year. At Saxendrift, geological compilation, re-modelling and
reclassification resulted in a 92% increase in indicated resources (with only
a 45% reduction in inferred resources for a significant net overall
increase). A recompilation of data and re-modelling of mineral resources for
the Niewejaarskraal project resulted in 42% increase in overall mineral
resources (although the 30% previously classified as indicated was downgraded
to the inferred category. See summary table below.)
Diamond sales are ongoing and the international diamond market is showing
signs of improvement in terms of trading activity and firmer sales prices and
the Company continues to meet its financial commitments and has room left in
its credit line, all contrary to what Pala would have shareholders believe.
Following the credit crunch and the precipitous decline in diamond prices
through late 2008, we as Executive Directors have been open in saying that
Rockwell should raise funds to bolster its balance sheet. Our situation is
no different from that of other alluvial producers who have, with few
exceptions, been severely impacted by the precipitous decline in prices. In
this respect, we were astonished that the audit committee which includes
Pala`s general counsel would publicly decry rather than welcome the fact that
Haywood Securities Inc. has offered to support the Fair Rights Offering as a
competitive back-stop to that offered by Pala."
David Copeland, Chairman and an Executive Director, added
"It is clear that Pala initiated this second contest, at a great cost to our
shareholders, in another attempt to seize control of your diamonds using the
guise of leadership when Pala already purports to speak to the majority of
the board while providing no details of the "restructure" plans referred to
in its circular. Pala complains about leadership without offering anything to
explain what Pala would have done differently over the recent market
difficulties despite having its general counsel on Rockwell`s board and so
shareholders must be only too aware that they have heard nothing about that
from the majority directors who have let Pala do their talking for them.
Two of your three Executive Directors draw no compensation other than
ordinary directors fees and this fight has never been about anyone keeping
their jobs - it is about the need to ensure the long term success of Rockwell
and in the process stop an aggressive minority shareholder from taking
advantage of tough times in the diamond business to seize control of what
they, and other shareholders, recognize as a professionally assembled
portfolio of very valuable assets that produce a unique array of scarce and
valuable fancy and large gemstone quality diamonds."
The Executive Directors of Rockwell have established a purpose-specific web
site where additional information, including the Executive Directors`
Information Circular and Proxy, is available to shareholders relating to the
issues concerning the Special Meeting at www.executivedirectorsrockwell.com.
THE FUTURE OF ROCKWELL DIAMONDS INC. WILL BE DETERMINED BY THE OUTCOME OF
THIS VOTE. DO NOT ALLOW A DISSIDENT MINORITY SHAREHOLDER TO TAKE CONTROL OF
ROCKWELL AND YOUR INVESTMENT.
THE EXECUTIVE DIRECTORS URGE YOU TO VOTE ONLY THE GREEN PROXY
AS RECOMMENDED ON THE GREEN PROXY.
Tania Marshall, Pr.Sci.Nat., an independent Qualified Person, is responsible
for the estimates for Holpan/Klipdam, Wouterspan, Saxendrift and
Niewejaarskraal. Dr Marshall has reviewed the technical information in this
release. Technical Reports by Dr. Marshall and Rockwell`s in-house Qualified
Person will be filed at www.SEDAR.com within 45 days.
For further details on the mineral resources at Kwartelspan and Zwemkuil-
Mooidraai, see Rockwell News Release dated March 12, 2007.
Mineral Resources as at February 28, 2009
Property Category Volume Grade
(cubic (carats per
meters) 100 cubic
meters)
Wouterspan Indicated 5,025,500 0.70
Inferred 37,774,000 0.70
Holpan Indicated 1,137,300 0.74
Inferred 5,937,000 0.74
Klipdam Indicated 1,135,200 0.91
Inferred 2,816,000 0.91
Saxendrift Indicated 5,063,099 1.01
Inferred 4,358,143 0.72
Niewejaarskraal Inferred 20,630,500 0.84
Zwemkuil-Mooidraai Inferred 1,640,000 0.95
Kwartelspan Inferred 1,384,577 1.50
The comments of the Executive Directors in this news release and on the
website are solely their own and not of any other director. For general
information about Rockwell please visit its own website at
www.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or
within North America at 1-800-667-2114. Investor Services deals with Company
information and is not authorized to discuss matters or answer questions
relating to the contested special shareholders meeting.
Questions relating to the Executive Directors` positions in respect of the
special meeting should be directed to the Laurel Hill Advisory Group by email
at rockwellinfo@laurelhillag.com or by phone Toll Free at 1-888-882-6737 in
North America, 00-800-8655-1111 in Europe or 0-800-982-179 in South Africa or
Collect at 1-416-637-4661.
No regulatory authority has approved or disapproved the information contained
in this news release
FORWARD LOOKING STATEMENT
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
Rockwell expects are forward-looking statements. Although Rockwell 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, and
general economic, market or business conditions. Investors are cautioned that
any such statements are not guarantees of future performance and those 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 www.sec.com and Rockwell`s home
jurisdiction filings that are available at www.sedar.com.
INFORMATION CONCERNING ESTIMATES OF INDICATED AND INFERRED RESOURCES
This news release also uses the terms `indicated resources` and `inferred
resources`. Rockwell Diamonds Inc advises investors that although these
terms are recognized and required by Canadian regulations (under National
Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S.
Securities and Exchange Commission does not recognize them. Investors are
cautioned not to assume that any part or all of the mineral deposits in these
categories will ever be converted into reserves. In addition, `inferred
resources` have a great amount of uncertainty as to their existence, and
economic and legal feasibility. It cannot be assumed that all or any part of
an Inferred Mineral Resource will ever be upgraded to a higher category.
Under Canadian rules, estimates of Inferred Mineral Resources may not form
the basis of feasibility or pre-feasibility studies, or economic studies
except for Preliminary Assessment as defined under 43-101. Investors are
cautioned not to assume that part or all of an inferred resource exists, or
is economically or legally mineable.
Canada
15 June 2009
Sponsor
Sasfin Capital (A division of Sasfin Bank Limited)
Date: 15/06/2009 08:59:02 Produced by the JSE SENS Department.
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