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RAPAPORT... Rockwell Diamonds Inc. completed an offering of two-year unsecured convertible debentures in a principal amount of $4.1 million with two insiders, namely Rockwell’s principal shareholder Daboll Consultants Ltd., an affiliate of Diacore, as to $3 million and with Mark Bristow, Rockwell’s non-executive chairman as to $1.1 million. The proceeds will be used to finance current and proposed work programs Rockwell's diamond projects and for general working capital purposes. James Campbell, the mining company's CEO, explained that the funding will enable Rockwell to strengthen its balance sheet and continue financing organic growth projects. "Having funded two new processing plants, at Saxendrift Hill Complex and Niewejaarskraal, from working capital during the last two years, management felt it prudent to pursue additional funding and received board approval to do so.
“Our partnership with Diacore has delivered significant value for both parties over the last seven years and we are delighted to have this further vote of confidence from them. Furthermore, the additional investment by Mark Bristow, who is already a substantial investor in the company, reflects his confidence in the future growth of Rockwell. The additional funding makes us more resilient in the short term, while we continue with internal developments to increase our capacity towards our medium target of processing 500,000m3 of quality gravels per month from our Middle Orange River operations as well as pursue external opportunities to grow and leverage our diamond value chain capabilities,” Campbell said.
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