VANCOUVER, Jan. 6 /CNW/ - Rockwell Diamonds Inc. ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces that it has now
completed approximately $7.4 million of the planned $12.5 million of
financings announced December 2, 2009. The shares issued under this financing
will be subject to four month resale restricted periods from their issuance
dates in December 2009 and January 2010. The Company also intends to increase
the originally planned $12.5 million of financings by approximately $2.2
million, and it has received Toronto Stock Exchange approval for such
increase. The Company expects to complete the remaining financings in January
2010.
The remaining portion of the Company's recapitalization will be sought
through a rights offering planned for January 2010. Completion of at least
$3.1 million of this rights offering is guaranteed by another new principal
investor, Daboll Consultants who are associated with the Steinmetz Diamond
Group.
Appointment of New Director
Together with completion of the initial part of the financing, Rockwell
has appointed Mr Yong Guo as a director of the Company. Mr Guo is the managing
partner of Godia Capital Partners ("Godia"), one of the first Chinese private
equity funds created to focus on investment opportunities in resource projects
in Africa. Mr Guo and his investment partners also have a sound knowledge of
the emerging Chinese diamond manufacturing sector and, over the past year,
have done an extensive assessment of mining opportunities in southern Africa.
Mr Guo has been involved in the successful launch and management of Omaha
Capital China and CMT China Value Partners, two venture capital funds focussed
on early growth investment opportunities in China. He is also the Vice
President of Business Development for ChinaEDU, Beijing, a leading on-line
education company in China, and iSoftStone Technology, Beijing, a successful
IT outsourcing company in China. Mr Guo holds a Bachelor of Computer Sciences
from Southeast University, Nanjing, China, and a Master of Computer Science
from Syracuse University in the USA.
President and CEO John Bristow commented "We are pleased to have
completed the majority of our planned financing. These funds provide the basis
on which we can strengthen our balance sheet, modernize and re-commission the
processing plant at Wouterspan - the Company's fourth operation which has been
on care and maintenance since January 2009, take advantage of increasing
diamond prices, and re-commence our growth plans. We welcome Mr Yong Guo to
our board and look forward to his assistance in tapping into the Chinese
investment markets and identifying opportunities in the rapidly expanding
Chinese diamond manufacturing and retail sector."
<<
John Bristow
President and CEO
No regulatory authority has approved or disapproved the information
contained in this news release.
Forward Looking Statements
>>
This release includes certain statements that may be deemed
"forward-looking statements" or "forward-looking information" (together,
referred to as "forward-looking statements"). Other than statements of
historical fact, all statements in this release that relate to the financing
and rights offering are forward-looking statements. Although Rockwell believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guaranteed, and the terms and
timing of the financing and rights offering may differ materially from those
in the forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include the actions
and approvals of securities regulatory authorities, including the securities
regulatory authorities in each province and territory of Canada, the Toronto
Stock Exchange and the Johannesburg Stock Exchange, the availability of
capital and financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees and the
actual terms of the financing or rights offering may differ materially from
those outlined in the forward-looking statements.
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/For further information: on Rockwell, please visit the Company's website
at www.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or
within North America at 1-800-667-2114/
