Rockwell receives offers for some of its assets

JOHANNESBURG (miningweekly.com) – Alluvial diamond miner Rockwell Diamonds has received offers for certain assets in its portfolio.

Incoming CEO Tjaart Willemse, who will take the reins from James Campbell by the end of this month, in September said the company was in a “state of despair”.

He cited “a general breakdown in controls over a considerable period of time” and nonadherence to the company's procurement policy.

“This, coupled with inadequate work planning and the lack of project front-end loading has led to a series of financial management concerns and business risks. Blurred lines of accountability, both within the organisation and between the company and some of its service providers, does not bode well for proper management and control of the business and a perceived lack of a sense of urgency further exacerbates the potential for failure,” Willemse cautioned at the time.

The company on Thursday said it was now considering its options and the possibility of selling on one or more of its assets. “Should a transaction be concluded, it is anticipated that it would improve liquidity and our working capital position,” Rockwell said in a statement.

Meanwhile, the implementation of a mining agreement between HC Van Wyk Diamonds (HCVW) and C-Rock Mining Limited (CML) and other related agreements between HCVW, Saxendrift mine and CML, have not proceeded.

As a result, the parties have given notice to CML that the various agreements have been terminated and that they are engaged in a dispute over these agreements.

“It has been brought to our 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,” it stated.

Besides Saxendrift, Rockwell also operates the Remhoogte/Holsloot project, the Niewejaarskraal project and the Wouterspan project, all in the Northern Cape.