Court dismisses Rockwell subsidiary liquidation bid by contractor

30th November 2016 By: Henry Lazenby - Creamer Media Deputy Editor: North America

VANCOUVER ( – TSX- and JSE-listed alluvial diamond miner Rockwell Diamonds announced Tuesday that a spoliation application by contractor C-Rock Mining Limited (CML) was dismissed with costs by the High Court in Kimberley, South Africa.

This decision clears the way for the company to resume its mining activities, which is expected to happen before the weekend.

Rockwell continues to pursue additional legal processes to deal with damages and other related contracts, as well as matters arising from a forensic review.

Rockwell on Friday reported that it had suspended mine production activities and work to complete the Wouterspan wet plant as some of its subsidiaries faced a liquidation bid by CML.

The applications for liquidation arose from alleged claims pursuant to certain contracts that are in dispute. Rockwell’s position is also founded, in part, on the results of a substantial forensic review recently completed by an independent forensic auditor in Johannesburg, which identified several instances of irregular transactions, unsupported transactions and irregular approvals involving CML and a former senior Rockwell employee.