Rockwell Diamonds Announces Acquisition

Rockwell Diamonds Inc. (TSX:RDI) announced that it has signed a conditional agreement with Bondeo 140 CC and its affiliates to acquire certain alluvial diamond properties and associated plant and equipment for $28.5 million.

As quoted in the press release:

The total acquisition consideration comprises of $12.0 million (ZAR120 million) for the mineral rights and three fit-for-purpose processing plants with such consideration payable on the closing date. The remaining $16.5 million (ZAR 164 million), allocated to earthmoving fleet and other associated equipment, is made up of $3.9 million (ZAR38.6 million) to be paid to the sellers over a period of ten months in equal instalments and the balance relating to equipment leases and hire purchases, intended to be refinanced on similar terms with South African financial institutions and / or current mobile fleet and equipment supply partners.

James Campbell, CEO and president of Rockwell, stated:

We are delighted to have concluded this agreement as it represents an exciting growth platform for Rockwell. Our executive and operational management have demonstrated their alluvial diamond production expertise during Rockwell’s corporate turnaround and have the capacity to take on these additional assets. We have reviewed a number of consolidation opportunities and the transaction met all our strategic criteria. Its assets are contiguous to our existing MOR operations, which are known for their gem quality diamonds.

Click here for the full Rockwell Diamonds Inc. (TSX:RDI) press release