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Rockwell's Valuation, Steinmetz Investment Boost Shares

Jul 21, 2011 11:08 AM   By Jeff Miller
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RAPAPORT... Rockwell Diamonds confirmed that the Steinmetz Diamond Group, through its subsidiary Daboll Consultants, subscribed  to $5 million in the current private placement at  75-cents per share, or 5-cents per share prior to a 15:1 consolidation. The placement closes on July 22.  The subscription, along with news of a strong company valuation, drove Rockwell's shares up 5 percent to 60-cents in late morning trading on the Toronto Stock Exchange.

Ori Temkin, the chief executive of Steinmetz Diamond Group, explained that their strategic partnership with Rockwell continues to flourish. ''We have committed significant capital to the current capital-raising initiatives which clearly demonstrates that we have complete confidence in their investment plans to improve the production profile."

Rockwell's chief executive, James Campbell,  stated that the significant capital from Daboll, together with the funds being raised from institutional and private investors,  will enable the junior diamond miner to continue with investment plans.

Rockwell's diamond properties include   Wouterspan, Tirisano, Klipdam, Holpan, Niewejaarskraal and Saxendrift. According to a valuation  by Evans & Evans Inc.,  dated February 28, 2011, the range of fair market value for Rockwell Diamonds was determined to be between $62 million and $69.1 million.  Rockwell's properties, in aggregate, were valued in the range of $149.5 million and $165 million.

"We have a sound understanding of our resources and have published a technical report for each of our properties," said  Campbell.  "Having completed a strategic review of the business at the beginning of this year, we have a full understanding of what we need to do to improve our financial performance. We are totally committed to sustainably improving our diamond recovery and thus accreting revenue and profitability in order to close the value gap."

 

 

Tags: diamond, diamonds, group, Jeff Miller, Rockwell, steinmetz, valuation
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