JOHANNESBURG (miningweekly.com) – With the liquidation application for three JSE-listed Rockwell Diamonds subsidiaries postponed to March next year, Ascot Diamonds can now continue its bid for the subsidiaries and, subsequently, the acquisition of N9C Resources, one of Rockwell’s Cayman Islands subsidiaries.
The Canadian alluvial diamond miner on Thursday said Ascot’s preliminary offer was structured to acquire the business as a going concern, and included an offer of compromise of creditors and claims which would enable Ascot, through its subsidiary Istotron, to take over the Wouterspan mine and restart it.
The subsidiaries, Rockwell Resources, HC van Wyk Diamonds and Saxendrift Mine, were placed into provisional liquidation on September 12, with applications initiated by the business rescue practitioners (BRPs) added to the initial November 2016 application by C-Rock Mining.
Earlier this year, Ascot proposed two rescue transactions for the distressed South African assets and the subsidiary in the Cayman Islands, with the court’s decision to postpone the liquidation application allowing the transactions to proceed.
“Following discussions between counsel for the companies, the BRPs, C-Rock and two parties who applied for leave to intervene in the proceedings, namely Ascot Diamonds and Nelesco 318, it was resolved by agreement that both sets of liquidation applications be postponed to March 16, 2018, and the applications for leave to intervene would be dealt with prior to the liquidation applications, namely on February 23, 2018,” Rockwell said.
Ascot's offer to also buy Rockwell's Cayman companies is conditional on a successful buyout of the three South African subsidiaries.
The sale of these companies would be subject to creditor and shareholder approval.
“The company now understands that Ascot will engage this week in negotiations with provisional liquidators to get this matter concluded,” Rockwell noted.