Rockwell to Acquire Alluvial Diamond Properties in MOR Region
January 06, 15
(IDEX Online News) – Rockwell Diamonds Inc. has entered into a conditional agreement to acquire certain alluvial diamond properties and associated plant and equipment from Bondeo 140 CC.
James Campbell
The deal, which will total C$28.5 million ($24.2 million), involves assets contiguous to Rockwell’s existing properties and will significantly enlarge its operating and resource base in the Middle Orange River (MOR) region.
Rockwell will pay C$12 million ($10.2 million) for the mineral rights and three fit-for-purpose processing plants. The remaining C$16.5 million ($14 million) is for earthmoving fleet and other equipment.
CEO and president James Campbell said the new assets offer economies of scales that the company believes will take it above its target of processing 500,000 square meters a month. He also said it will allow Rockwell to allocate its resources more efficiently.
Rockwell said it hopes to complete financing on or before March 31 in order to raise the C$12 million ($10.19 million) payable on the closing date, which it expects to occur during the second quarter of the year.