Latest News: Rockwell Diamonds Inc. ROCKWELL [RDI]
Tue, 21 Feb 2017
Official Announcement [CC]
Rockwell - sale of non-core assets
Rockwell announced that it has concluded the sale transaction entered into with Nelesco 318 (Pty) Ltd. (“Nelesco”) for certain assets, the assumption of ZAR70 million (CAD7.0 million) in rehabilitation liabilities, the transfer of 100 employees and a cash consideration of ZAR45 million (CAD4.5 million) as announced in December 2016. The first of three payments, ZAR20 million (CAD2.0 million), was settled after the fulfillment of certain suspensive conditions, as agreed. The second payment tranche is ZAR15M (CAD1.5 million) and is due on completion of the registration of the Saxendrift farm in the name of Nelesco, and the balance of ZAR10 million (CAD1.0 million) upon approval of the Section 11 transfer of the mineral properties to the name of Nelesco as well as the consent of the Takeover Regulation Panel of South Africa. In the press release of December 22, 2016 the expected impairment of book value was CAD1.25 million which is now restated as CAD8.55 million on completion of the transaction.
Nelesco has in the meanwhile completed site establishment and commenced its mining operations. Until the Section 11 transfer is received, all operations will be on a contract mining basis with a royalty payable to the Company of 2.5% of revenue from diamonds recovered from properties covered by the transaction. Nelesco will be responsible for any related rehabilitation liabilities.
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