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RAPAPORT... Rockwell Diamonds Inc. agreed to sell the Tirisano diamond project in the North West province of South Africa for $6.3 million to a consortium of miners. Tirisano was placed on care and maintenance in December 2012 and Rockwell subsequently brought in royalty contract miners to continue operations, resulting in average production of between 1,500 to 2,000 carats per month. Rockwell's 12.5 percent royalty on the sale of the diamonds was applied to the care and maintenance costs of the property and a portion of the overhead. The consortium of royalty miners will acquire the entire issued share capital, together with claims on loan account in Rockwell's subsidiary, Etruscan Diamonds Pty. Ltd., including the Tirisano mining right and its associated infrastructure. The consortium will assume debt owed by Etruscan, amounting to $3.5 million and related environmental liabilities. The cash consideration will be settled with two initial payments totaling $2.1 million in March and a second in April, followed by 20 equal monthly installments of $210,000. The proceeds will be used to finance Rockwell's general working capital and investments related to acquisitions.
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