Market NewsCommentRockwell completes Trans Hex acquisitions

Rockwell completes Trans Hex acquisitions

Rockwell Diamonds Inc. said it had completed the acquisition of the Trans Hex Middle Orange River operations and projects. The properties are located close to Rockwell's Wouterspan mining operation on the Middle Orange River in South Africa’s Northern Cape Province and include two open pit alluvial diamond mines (Saxendrift and Niewejaarskraal) and three alluvial diamond exploration projects (Kwartelspan, Zwemkuil-Mooidraai, and Remhooget-Holsloot). Under the deal, Rockwell will pay Trans Hex approximately ZAR115.5 million (around US$14.6 million) in cash and interest, and assume liabilities for previous staff retrenchments of approximately ZAR4.7million for a total consideration of approximately ZAR120.2 million (around $15.2 million). Rockwell said funds for the purchase of the Trans Hex operations were set aside from its 2007 capital raising. Rockwell said the acquisition meant an increase in monthly carat production over and above the 2007 average of about 2,000 carats per month as well as a reduction in operating costs by spreading overhead costs across additional mines rather than the current 3 operations.

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