TORONTO, Aug. 21, 2017 /CNW/ - Rockwell Diamonds Inc.
("Rockwell" or the "Company") (TSX: RDI; JSE: RDI) announces that its board of directors have, after engaging with the Toronto
Stock Exchange, decided to delist from the TSX and list with the NEX (a separate board of the TSX Venture Exchange) given the
status of its South African subsidiaries which are under business rescue.
The Company expects this concurrent delisting and relisting to take place on or about August 31,
2017.
As disclosed previously, the Company had decided in April to seek to delist from the TSX in view of its current market
capitalization, and to initiate the application process for listing on the TSXV, however, considering the current status of its
South Africa subsidiaries the decision has been made to list on the NEX. The NEX is a separate
board of TSX Venture Exchange. It provides a trading forum for listed companies that have fallen below TSX and TSX Venture's
ongoing listing standards, or are companies that have low levels of business activity or have ceased to carry on active
business.
Trading of RDI shares on the Toronto Stock Exchange and Johannesburg Stock Exchange was halted, pending the outcome of the
hearing on the merits of the liquidation application against the Company's three subsidiaries, which has now been postponed to
November 3, 2017 in view of the business rescue proceedings. The Company however, remains in full
compliance with its securities regulatory requirements.
The business rescue practitioners continue to work towards delivering a business rescue plan on or before September 30, 2017.
About Rockwell Diamonds
Rockwell is engaged in the business of operating and developing alluvial diamond deposits. The Company also evaluates
consolidation opportunities that have the potential to expand its mineral resources and production and provide accretive value to
the Company.
Rockwell has set a strategic goal to become a mid-tier diamond production company with specific focus on the Middle Orange
River region in South Africa.
As at the date of this document, Rockwell's subsidiary in South Africa (Rockwell Resources
RSA Pty Limited) and its two subsidiaries (HC van Wyk Diamonds Limited and Saxendrift Mine Pty Limited) were being operated under
Business Rescue Management as ordered by the Court, following an application by creditors of the three South African subsidiaries
on May 18, 2017.
Rockwell's common shares trade on the Toronto Stock Exchange and the JSE Ltd under the symbol "RDI". Trading of Rockwell's
shares remains suspended at the request of the Company.
No regulatory authority has approved or disapproved the information contained in this news release.
Forward Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning
of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions
"may" or "will" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ
materially from those in the forward-looking statements.
Factors that could cause actual results to differ materially from those in forward-looking statements include uncertainties
and costs related to the transaction and the ability of each party to satisfy the conditions precedent in a timely manner or at
all, exploration and development activities, such as those related to determining whether mineral resources exist on a property;
uncertainties related to expected production rates, timing of production and cash and total costs of production and milling;
uncertainties related to the ability to obtain necessary licenses, permits, electricity, surface rights and title for development
projects; operating and technical difficulties in connection with mining development activities; uncertainties related to the
accuracy of our mineral resource estimates and our estimates of future production and future cash and total
costs of production and diminishing quantities or grades of mineral resources; uncertainties related to unexpected judicial
or regulatory procedures or changes in, and the effects of, the laws, regulations and government policies affecting our mining
operations; changes in general economic conditions, the financial markets and the demand and market price for mineral
commodities such as diesel fuel, steel, concrete, electricity, and other forms of energy, mining equipment, and
fluctuations in exchange rates, particularly with respect to the value of the US dollar, Canadian dollar and South
African Rand; changes in accounting policies and methods that we use to report our financial condition, including uncertainties
associated with critical accounting assumptions and estimates; environmental issues and liabilities associated with mining and
processing; geopolitical uncertainty and political and economic instability in countries in which we operate; and labour
strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate
our mines, or environmental hazards, industrial accidents or other events or occurrences, including third party interference that
interrupt operation of our mines or development projects.
For further information on Rockwell, Investors should review Rockwell's home jurisdiction filings that are available at
www.sedar.com.
SOURCE Rockwell Diamonds Inc.
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