Rockwell Diamonds has announced that it has entered into a conditional agreement to acquire certain alluvial diamond properties and associated plant and equipment from Bondeo 140 and its affiliates which own and operate alluvial diamond properties for a total consideration of R284.2 million. The assets are contiguous to Rockwell’s existing properties and will significantly enlarge its operating and resource base, thus leveraging the Company’s growth in the Middle Orange River region.

The total acquisition consideration comprises of R120 million for the mineral rights and three fit-for-purpose processing plants with such consideration payable on the closing date. The remaining R 164 million, allocated to earthmoving fleet and other associated equipment, is made up of R38.6 million to be paid to the sellers over a period of ten months in equal instalments and the balance relating to equipment leases and hire purchases, intended to be refinanced on similar terms with South African financial institutions or current mobile fleet and equipment supply partners.

The transaction is subject to conditions precedent, including customary regulatory approvals and the company completing a financing on or before March 31, 2015 in order to raise the R120 million payable on the closing date. Rockwell said in a statement they expect that the closing will occur in the second quarter of 2015, subject to the satisfaction of all conditions precedent.

Rockwell has engaged Dundee Capital Markets to assist it in connection with its expected financing for part of the purchase price payable by Rockwell pursuant to the transaction.

“We are delighted to have concluded this agreement as it represents an exciting growth platform for Rockwell. Our executive and operational management have demonstrated their alluvial diamond production expertise during Rockwell’s corporate turnaround and have the capacity to take on these additional assets” James Campbell, CEO and President said commenting on the transaction