Rockwell's Valuation, Steinmetz Investment Boost Shares
Post Date: 22 Jul 2011 Viewed: 388
Rockwell Diamonds confirmed that the Steinmetz Diamond Group, through its subsidiary Daboll Consultants, subscribed to $5 million in the current private placement at 75-cents per share, or 5-cents per share prior to a 15:1 consolidation. The placement closes on July 22. The subscription, along with news of a strong company valuation, drove Rockwell's shares up 5 percent to 60-cents in late morning on the Toronto Stock Exchange.
Ori Temkin, the chief executive of Steinmetz Diamond Group, explained that their strategic partnership with Rockwell continues to flourish. ''We have committed significant capital to the current capital-raising initiatives which clearly demonstrates that we have complete confidence in their investment plans to improve the production profile."
Rockwell's chief executive, James Campbell, stated that the significant capital from Daboll, together with the funds being raised from institutional and private investors, will enable the junior diamond miner to continue with investment plans.
Rockwell's diamond properties include Wouterspan, Tirisano, Klipdam, Holpan, Niewejaarskraal and Saxendrift. According to a valuation by Evans & Evans Inc., and dated February 28, 2011, the range of fair market value for Rockwell Diamonds was determined to be between $62 million and $69.1 million. Rockwell's properties, in aggregate, were valued in a range of $149.5 million and $165 million.
"We have a sound understanding of our resources and have published a technical report for each of our properties," said Campbell. "Having completed a strategic review of the business at the beginning of this year, we have a full understanding of what we need to do to improve our financial performance. We are totally committed to sustainably improving our diamond recovery and thus accreting revenue and profitability in order to close the value gap."