Canada’s Rockwell Diamonds Inc has signed a conditional agreement to acquire specific alluvial diamond properties and associated equipment from Bondeo 140CC in South Africa for US$24mn
With the acquisition, Rockwell Diamonds’ operating and resource base would expand, thus leveraging the company’s growth in South Africa’s Middle Orange River (MOR) region.
James Campbell, president of Rockwell Diamonds, said, “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.”
According to officials from Rockwell Diamonds, US$10mn has been allocated for procuring mineral rights and three fit-for-purpose processing plants. The remaining US$14mn would be used for earthmoving equipment.
The Orange river flows through Namibia, Lesotho and South Africa, and is known for a variety of alluvial deposits. Specifically, the MOR region in South Africa is renowed for its quality of diamonds, and Rockwell Diamonds had reviewed a number of consolidation opportunities in the area, prior to the agreement. The new assets have potential to reduce the volatility of quarterly production results and take the company above target of processing 500,000 cu/m per month.
However, the transaction is subject to regulatory approvals but Rockwell officials are expecting the deal to be closed by Q2 2015.
