JOHANNESBURG (miningweekly.com) – TSX- and JSE-listed Rockwell Diamonds has completed the acquisition of the Jasper mine following the conversion of the mine’s old-order mining right into a new-order mining right.
The group settled the R2-million purchase consideration through the issue of 533 332 shares at R3.75 apiece to Jasper shareholders.
The deal formed part of the transaction to unwind Rockwell’s black economic-empowerment partnership with Africa Vanguard Resources (AVR).
Last year, the parties announced a restructured agreement, which included a payment to AVR by Rockwell of R15-million in the form of shares listed on the JSE, which included the settlement, as well as purchase consideration, for AVR's Jasper mine, in the Northern Cape, and, as part of the agreement, AVR paid an amount of R22.5-million to Rockwell.
Good progress had been made in terms of securing external funding to cover purchase consideration by the new partner, Rockwell CEO James Campbell noted.
The Jasper mine project, with initial alluvial deposit assessments indicating a similar production profile to that of Rockwell’s nearby Saxendrift operation in terms of quality, size and value, provided the potential to extend the latter’s mine life, he said in a statement on Wednesday.
“Jasper increases our options within the Saxendrift complex to grow our production profile and deliver on our forecast recoveries,” he stated.
Rockwell expected to release the technical statement outlining the results of the geological studies estimating the resources at the Jasper mine by the end of May.
The company was also reviewing the possible construction of an in-field screen at Jasper, with projected efficiency benefits for the overall operating cost structure of the mine.