TORONTO (miningweekly.com) – After an unsuccessful proxy fight to remove the board of Rockwell Diamonds, shareholder Pala Investments Holdings has sold 6,5-million shares in the diamond miner, reducing its stake in Rockwell from 19,9% to about 17,2%.

Pala's representative on Rockwell's board, Gregory Radke, has also resigned his directorship, effective June 18.

The shares were sold through the TSX, and for “investment purposes”, Pala said.

Last week, Rockwell shareholders voted against proposals by Pala that the company's board be replaced by a new slate, nominated by Pala, and that Rockwell's shareholder rights plan be removed.

Pala had said Rockwell suffered from a “lack of leadership”, while Rockwell's CEO John Bristow, chairperson David Copeland and a third executive director, Mark Bristow, accused Pala of attempting a “cashless takeover”.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.