JOHANNESBURG (miningweekly.com) – Dual-listed Rockwell Diamonds has entered into an agreement to sell its noncore Tirisano project, in the North West, to a mining consortium for R60-million.

The consortium, comprising royalty miners that have operated the mine for the last two years, would acquire the entire issued share capital, together with claims on loan account in Rockwell’s 100% owned subsidiary Etruscan Diamonds.

The deal would also include the mining rights over, and the infrastructure at, Tirisano.

In addition, the buyer would assume the R34-million in debt owed by Etruscan, as well as related environmental liabilities.

Rockwell had placed the mine on care-and-maintenance in December 2012, but later brought in the royalty miners to continue mining.

During the last two years, the contract mining operations processed an average of 160 000 m³ a month, producing between 1 500 ct/m and 2 000 ct/m.

Rockwell’s 12.5% royalty on the sale of the diamonds was applied to the care and maintenance costs of the property and a portion of the overheads. 

The acquisition would be settled by way of two initial payments of R10-million each this month and in April, followed by 20 equal monthly instalments of R2-million.

The proceeds would be used to fund Rockwell’s general working capital and investments related to acquisitions, additional exploration and ongoing development of the portfolio of mining and mineral rights.

“The sale of Tirisano. . .will allow us to focus entirely on our growth objectives in the Middle Orange River [exploration areas] and our stated intention of exceeding our 500 000 m³ a month processing target,” CEO and president James Campbell said, adding that the completion of the acquisition and integration of the Remhoogte/Holsloot project into the current business, remained Rockwell’s short-term priority.

He further pointed out that the company was progressing with its exploration programmes and that it intended to develop three-million to four-million cubic metres of its Rooikoppie exploration targets at Lanyonvale, while carrying out further pitting of the Rooikoppie gravels at Wouterspan with the goal of growing Rockwell’s profitable operational base for the future.