Rockwell Diamonds secures $3.6 mln to finance projects

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Rockwell Diamonds said it recently completed an offering of two-year unsecured convertible debentures in a principal amount of C$4.1 million ($3.6 million) with two insiders, namely Daboll Consultants its principal shareholder and with Mark Bristow, the company’s non-executive chairperson. <br>
The company said C$3 million was secured from Daboll and C$1.1-million from Bristow. <br>
It said in a statement that the proceeds of the offering would be used to finance current and proposed work programmes on the company's diamond projects and for general working capital purposes. <br>
The debentures would bear interest at a rate of 5 percent per annum and would become convertible, subject to the prior approval of the disinterested minority shareholders, into equity securities of the company, it said. <br>
“We are pleased that our chairman, Mark Bristow and Diacore, our beneficiation joint venture partner, have taken up these C$4.1 million debentures, which will enable Rockwell to strengthen its balance sheet and continue financing its organic growth projects,” said Rockwell chief executive James Campbell. <br>
“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 this additional funding and received board approval to do so.” <br>
He said all key shareholders were consulted and given an opportunity to participate.<br>
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<b>Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished</b><br>
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