Rockwell updates on strategic review

Rockwell Diamonds Inc. announced an update on the ongoing strategic review and implementation of a mining contract. The company disclosed in the second quarter management discussion and analysis issued in mid-October, that it was undertaking a strategic review of its assets and business options.

As a consequence of this review the Company can today confirm it has received offers for certain assets and is considering its options and the possibility of transacting on one or more of the assets. Should a transaction be concluded it is anticipated that it would improve liquidity and the company’s working capital position.

In an unrelated matter, the implementation of the mining agreement between H C Van Wyk Diamonds Limited and C-Rock Mining Limited (CML), and other related agreements between HCVW, Saxendrift Mine (Pty) Ltd (collectively referred to as the Subsidiaries) and CML, have not proceeded as per the agreements and as a result the Subsidiaries have given notice to CML that the various agreements have been terminated and the Subsidiaries are engaged in a dispute over these agreements.

Rockwell noted that it was brought to its notice that CML and/or some of its agents have been distributing confidential information to third parties in contradiction with their contractual and confidential agreements with Rockwell and its Subsidiaries in an attempt to influence the outcome of the legal process which the Company intends to pursue robustly.