Rockwell kept waiting by High Court in bid to clear name

ROCKWELL Diamonds has been kept waiting for its day in court after the Kimberley High Court ruled on April 26 that there was no urgency in hearing its argument against an interim liquidation order.

The alluvial diamond miner said in an announcement today that a previously scheduled hearing for June 22 should not be brought forward as requested by the company. The High Court’s judged decided not to move the date of the hearing.

Rockwell is currently in business rescue after the High Court accepted liquidation application by Rockwell’s former mining contractor, C-Rock Mining.

Rockwell wants to prove that it is liquid so as to free itself from business rescue and have the liquidation order against it proved invalid.

Trading in Rockwell Diamonds shares was suspended on March 27 following the interim liquidation order which was against Rockwell’s three South African subsidiaries: Rockwell Resources RSA, HC van Wyk Diamonds, and Saxendrift Mine.

C-Rock’s contention is that it is owed monies relating to disputed invoices, reimbursement for tax penalties and other construction costs owed to it. It last year unsuccessfully launched a spoliation order against Rockwell.

Rockwell said today that interim liquidators had been appointed by the Master of the High Court but their powers had been suspended in view of filings made by the company in terms of its business rescue. “Accordingly, they (the subsidiaries) all remain under the operating control of the company,” it said.

“In that respect, the company confirms that the Wouterspan plant is now in the ramp up stage after commissioning,” said Rockwell CEO, Tjaart Willemse. “Last week, one of the diamonds recovered was a 60 carat stone which sold for $8,000 per carat,” he said. This is equal to about $480,000 or some R6.4m.

“The company remains persuaded that its case for dismissal of the liquidation application is sound, and after a full hearing it believes it should prevail and C-Rock Mining’s actions will be shown to be spurious and without foundation,” the company said in a statement on April 18.

Rockwell mines for alluvial diamonds in the Northern Cape province of South Africa. Its key asset is Wouterspan which is designed to process 200,000 cubic metres of gravels a month. The gravels are then screened for rough diamonds.

A number of its other assets, including the Saxendrift mine, were sold in an effort to cut debt and slash the firm’s rehabilitation liabilities.