Rockwell Completes C$7.8 million Financing
VANCOUVER, Oct. 19, 2011 /PRNewswire/ – Rockwell Diamonds Inc. (“Rockwell” or
the “Company”) (TSX:RDI; JSE:RDI, OTCBB:RDIAF) announces that it has
now completed its previously announced non-brokered private placement
raising C$7.8 million.
The Company issued a total of 10,341,969 shares with total gross
proceeds to the Company of CAD7,584,012 and ZAR1,207,250. Of the total
shares issued, 10,112,017 were listed on the TSX with the balance of
229,952 being listed on the JSE, at a price of $0.75 and R5.25 in
Canada and South Africa respectively. In accordance with applicable
Canadian securities laws, the hold periods on the 10,112,017 shares
available to trade on the TSX are four months.
The funds were raised primarily from a number of institutional investors
from North America, Europe and South Africa. In addition, Rockwell’s
strategic diamond beneficiation and marketing partner Daboll
Consultants Ltd, an affiliate of the Steinmetz Diamond Group,
subscribed for $5 million. The placement received shareholders’
approval on September 12, 2011.
The Company intends to use the net proceeds of this private placement to
finance the implementation of bulk x-ray plant at Saxendrift as well as
the final commissioning of the plant at Tirisano which is set to go
into production by the end of October 2011. The remaining funds will be
used to settle the Tirisano creditors and exploration and project
About Rockwell Diamonds:
Rockwell is engaged in the business of operating and developing alluvial
diamond deposits, with a goal to become a mid-tier diamond mining
company. The Company has three existing operations, which it is
progressively optimizing, two development projects and a pipeline of
earlier stage properties with future development potential. Rockwell
has completed the acquisition of the Tirisano property with effect from
September 1, 2011.
Rockwell also evaluates merger and acquisition opportunities which have
the potential to expand its mineral resources and production profile
and would provide accretive value to the Company.
No regulatory authority has approved or disapproved the information
contained in this news release.
SOURCE Rockwell Diamonds Inc.