| Wed 30 Jun 2010, 14:30 | | RDI - Rockwell Diamonds Incorporated - Acquisition of a 20% stake in Flawless |
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RDI
RDI
RDI - Rockwell Diamonds Incorporated - Acquisition of a 20% stake in Flawless
Diamond Trading House
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 ANNOUNCES THE ACQUISITION OF A 20% STAKE IN FLAWLESS DIAMOND TRADING
HOUSE
June 30, 2010 - Vancouver, BC. - Rockwell Diamonds Inc. ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces that it has acquired a
20% stake in Flawless Diamond Trading House (Proprietary) Limited ("FDTH").
Effective June 1, 2010, the Company has purchased a 20% stake in FDTH that was
previously held by Mr Hennie van Wyk for a consideration of South African Rand
("ZAR") 700,000 (approximately $97,000).
FDTH was established in 2006 to provide a professional marketing and sales
facility to market and sell Rockwell`s diamond production. Rockwell had no
prior experience of marketing high quality alluvial gemstone production and with
new diamond legislation in the process of being implemented at the time that
Rockwell was establishing a foothold in South Africa, it was deemed prudent to
ensure that Rockwell had access to a strong and secure dedicated marketing
facility to maximize revenue from the sale of its unique diamond production.
FDTH was established in the premises of South Africa`s internationally
recognized high security diamond trading and manufacturing hub known as Jewel
City, located on Commissioner Street in Johannesburg. FDTH was established and
is still run by experienced and internationally recognized diamantaire, Jeffry
Brenner.
The facility is operated by a small and highly experienced marketing and
valuation team which collectively has over 100 years of rough diamond valuation,
marketing and sales experience. FDTH follows rigorous diamond handling,
security, and Kimberley Process protocols, and all marketing and sales
procedures are monitored and facilitated by a proprietary computer based system.
This system provides independent and transparent verification of results for
sellers and buyers, and is acknowledged in the industry as a leading standard
for transacting diamond sales.
Aside from providing a unique marketing and sales arm for Rockwell at a fee
which is well below the market norm for provision of such services, FDTH also
conducts sales on behalf of other small South African producers. In addition to
providing a marketing and sales arm for Rockwell, FDTH has also facilitated the
successful marketing and sales agreement that Rockwell entered into with the
Steinmetz Diamond Group. This agreement allows Rockwell to share in profits
generated from the manufacture and sales of large and unique stones mined at
Rockwell`s operations.
The recently acquired 20% stake in FDTH will provide Rockwell with access to
additional revenue, allowing the Company to gain insight into diamond sales
trends which will assist with its short and long term production and growth
plans.
John Bristow, CEO commented "Our investment in FDTH provides us with additional
revenue flow and will assist the Company to better understand the demand from,
and penetration into, an international diamond market which is undergoing
progressive change with the emergence of strong new players in India and China.
Rockwell will remain focussed on being a successful mining company, but every
opportunity to monitor and understand its markets and buyers will assist us with
short and long term plans for growth and development."
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 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
Date: 30/06/2010 14:30:01 Produced by the JSE SENS Department.
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