Tuesday, July 26, 2011

Rockwell Diamonds' sells unproductive assets for $6.5 million

Rockwell Diamonds Inc. (TSX:RDI), a Vancouver miner with operations in Africa, has sold three non core assets, raising $6.5 million that will be used for its capital projects.

The company said Tuesday it had sold:

— Its Makoenskloof property in South Africa for about $900,000, a deal complete earlier this month.

— An excavator located at the Wouterspan mine, sold for $3 million. The mine is on care an maintenance.

— The Holpan DMS plant for $2.6 million

"The strategic review which was conducted in the first quarter of 2011, included an investigation of our asset allocation processes to ensure that all equipment and properties were being fully utilized," said James Campbell, Rockwell's chief executive.

"This analysis of the company's asset register helped us to identify three assets that were not generating adequate returns and the decision was taken to sell these to generate funds for our capital investment program."

Rockwell operates and develops alluvial diamond deposits — found in river beds, the ocean floor or shoreline. Its main projects are the Tirisano mine and Wouterspan processing mill in South Africa.

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