Rockwell Diamonds has signed a deal to sell its diamond mines Remhugte (Remhoogte) and Saksendrift (Saxendrift) company Nelesco Proprietary 318 as part of its recently announced plans to change its strategy and business improvement. As a result of this transaction miner, is expected to receive R45 million in cash. Selling mine also includes the translation of 98 employees.
In a statement issued last week, Rockwell Diamonds reported that the payment will be made in three installments, the first of which in the amount of R20 million, is expected to go to the January 31, 2017 after the completion of certain conditions, the suspension of activities; second tranche of R 15 million follow upon completion of registration on Saksendrift Nelesco name; and the remaining tranche of R10 million will be paid upon completion and acceptance of certain contracts, approval of the transfer of ownership of the minerals company Nelesco, as well as the consent of the Commission on the legal regulation of mergers and acquisitions of South African companies.
In the period until all conditions of the transaction Nelesco will work on the contract of mining, Rockwell Diamonds paying a royalty of 2.5% of the proceeds from the sale of diamonds mined at the sites that are the subject of the transaction, and will also be responsible for any related her commitment to the restoration of the natural environment.
The deal also provides for the transfer to rent an office and residential complex mine Saksendrift Rockwell Diamonds company for twenty years, as well as access to water. Rockwell Diamonds Nelesco will supply electricity at cost.
"This transaction represents an important milestone in our plans to change its strategy in order to create a" new Rockwell Diamonds », - explains CEO Tyart Willems (Tjaart Willemse). - This will not only give money, in addition to the recently announced funding Rockwell Diamonds by the two major shareholders and third parties, but will get rid of non-core assets and associated liabilities, resulting in a new Rockwell Diamonds will be able to focus on the completion of the next phase work on building up production at the mine Vouterspen (Wouterspan) and concentrator, as well as the expansion of its portfolio of exploration and development. Translation 98 employees will also help us to optimize the number of employees and reduce the number of reduced workers'.
"I am very grateful for the support that we receive from our investors and commercial suppliers and especially by our employees during this difficult time, and now that the deal confidently advanced to the stage of completion, and taking into account to carry out the expansion of our processing factory and the approaching entry of her operation, we are encouraged that will give us an updated company Rockwell Diamonds », - he added.
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