| Fri 12 Mar 2010, 8:45 | | RDI - Rockwell - Rights Offering Update and Potential Acquisition |
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RDI
RDI
RDI - Rockwell - Rights Offering Update and Potential Acquisition
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")
RIGHTS OFFERING UPDATE
Potential Acquisition Announced
March 11, 2010 - Vancouver, BC. - Rockwell Diamonds Inc. ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces that it has received
a number of enquiries from shareholders who have not received their rights
or who are unsure about how to exercise them.
Shareholders are reminded that the rights offer circular can be downloaded
from www.SEDAR.com where it was filed on February 4, 2010. Shareholders with
questions are encouraged to call their stockbrokers if their Rockwell shares
are lodged at a brokerage. Brokers should have received formal notification
of the rights and they will automatically sell them on behalf of ineligible
persons. Directly-registered shareholders should have received their rights
in the mail, unless they are in the US. Questions can be directed to the
Company at the phone number below and as well to Computershare, the
depositary agent for the rights offering at Tel: 1-800-564-6253.The Company
understands that there have not been significant enquiries from its
shareholders who hold their shares on the JSE Limited in South Africa but,
should any such shareholders have any queries, they may approach their
brokers or Computershare South Africa at Tel: 0861 100 933.
In other developments, the Company has signed a term sheet with Etruscan
Diamonds Limited whereby the Company proposes to purchase Etruscan`s Blue
Gum diamond operation in the Ventersdorp region, South Africa. The
acquisition is for 74% of the operation with the balance owned pursuant to
South Africa`s Black Economic Empowerment regime. The price to be paid to
Etruscan is an amount not exceeding ZAR 33.5 million (approximately C$4.65
million) payable in Rockwell shares valued at C$0.068 each. The Company will
also assume certain non-material property maintenance obligations effective
immediately and other financial obligations upon completion of the
acquisition.
The Blue Gum alluvial diamond deposit hosts estimated mineral resources of
25 million cubic metres (indicated) with a grade of 2.37 carats/100 cubic
metres and 15 million cubic metres (inferred) with a grade of 2.37
carats/100 cubic metres as at October 2009.
Completion of the acquisition is subject to a number of conditions including
South African mining ministry consent, securities regulatory approvals
including TSX, satisfactory due diligence and project development financing
and electric power negotiations. The Rockwell shares to be issued will be
subject to escrow, resale and voting restrictions and will not materially
affect control. Completion is targeted for the third calendar quarter.
Tania Marshall, PhD., Pr.Sci.Nat., an independent Qualified Person, is
responsible for the resource estimate. Dr Marshall has reviewed this news
release and is responsible for the technical content.
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" or "forward-looking information" (together, referred to as
"forward-looking statements"). Other than statements of historical fact, all
statements in this release that relate to the proposed acquisition,
financing and rights offering are forward-looking statements. Although
Rockwell believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guaranteed, and the terms and timing of the financing and rights offering
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 the actions and approvals of securities
regulatory authorities, including the securities regulatory authorities in
each province and territory of Canada, the Toronto Stock Exchange and the
Johannesburg Stock Exchange, the availability of capital and financing, and
general economic, market or business conditions. Investors are cautioned
that any such statements are not guarantees and the actual terms of the
financing or rights offering may differ materially from those outlined in
the forward-looking statements.
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
12 March 2010
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 12/03/2010 08:45:01 Produced by the JSE SENS Department.
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