Rockwell subsidiaries sale still on the table
VANCOUVER (miningweekly.com) – A two-pronged purchase offer by Ascot Diamonds to acquire the three bankrupt South African subsidiaries, and later, a Cayman-based entity of Canadian miner Rockwell Diamonds is still a viable solution to achieve a sale transaction and therefore, a higher recovery value for creditors, Rockwell said in a statement on Monday.
A formal liquidation application for subsidiaries Rockwell Resources, HC van Wyk Diamonds and Saxendrift Mine has been postponed to March, to give Ascot enough time to negotiate a deal with the provisional liquidators (PLs) Honey Attorneys of Bloemfontein, South Africa – a process that has been complicated by hasty business rescue practitioners (BRPs) moving the liquidation process forward despite having a more valuable offer for the distressed assets in hand.
The Canadian alluvial diamond miner’s South African subsidiaries were placed into provisional liquidation on September 12, with applications initiated by the BRPs added to the initial November 2016 application by former mining contractor C-Rock Mining.
According to Rockwell, the buyer and their attorneys met with the PLs several times, and are now making a detailed proposal by creditors in a comprehensive compromise proposal to the PLs.
That purchase offer for the three subsidiaries therefore remains valid, and the PLs are in active discussion with beneficiation joint venture partner Diacore to advance such a proposal, Rockwell stated.
Rockwell also reported that Ascot has confirmed its additional offer to the company to subsequently acquire N9C Resources, one of Rockwell’s Cayman Islands subsidiaries in a separate transaction. Should the second offer proceed, Rockwell intends to approach creditors and shareholders in the company for approval.
The return date for hearing on the liquidation order is set for March 16.
Meanwhile, the Toronto-based Rockwell parent entity has reported a noncash nine-month comprehensive income of C$22.6-million, comprising almost entirely the reversal of foreign currency reserves held for the operations in South Africa, and certain stock-based compensation reserves, that were unwound upon deconsolidation of the South African subsidiaries.
All mining and operational activities have ceased since the BRPs successfully filed to have the three subsidiaries back into provisional liquidation on September 6, and placed the break-even Wouterspan plant on care and maintenance.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation