TORONTO (miningweekly.com) – Vancouver-based diamond miner Rockwell Diamonds and dissident shareholder (and one-time suitor) Pala Investment Holdings continued their war of words on Monday, banging out press releases within hours of each other.

Rockwell's executive directors – who Pala wants voted off the board – scored the first hit after the Supreme Court of British Columbia on Friday denied a petition from Pala that the executive directors' proxy for a June 17 shareholders meeting be struck down.

Pala called the meeting for a vote on its proposals to replace the board, remove the company's shareholder rights plan and launch a rights offering in which it would take up any shares not subscribed for.

However, Pala celebrated its own victory on Monday, after independent advisory service RiskMetrics recommended that shareholders vote in favour of the changes proposed in Pala's proxy circular.

Rockwell shares leapt 54% on Monday afternoon, to C$0,10 apiece by 15:15 in Toronto.

Pala says that Rockwell faces a “lack of leadership”, while the executive directors – CEO John Bristow, chairperson David Copeland and Randgold Resources CEO Mark Bristow – argue that Pala is attempting a cashless takeover.

Last year, Pala launched and then withdrew a hostile takeover offer for Rockwell, which mines high-value diamond from alluvial operations in South Africa.