Canada-based diamond production company Rockwell Diamond has acquired Jasper mine following the conversion of old order mining rights into newer ones.
The company has settled SAR2m ($215,804) by issuing a total of 533,332 Rockwell shares representing a 5-day volume weighted moving average price at the time that the agreements were signed in March 2012.
Rockwell Diamonds CEO James Campbell also claimed that the newly acquired mine presents potential to extend the mine life of Saxendrift Mine.
"Jasper increases our options within the Saxendrift Complex to grow our production profile, and deliver on our forecast recoveries," added Campbell.
The company, through the acquisition, exited the Black Economic Empowerment partnership with Africa Vanguard Resources.
Good progress has been made in terms of securing external funding to cover purchase consideration by the new BEE shareholder in order to finalize the unbundling of the transaction with AVR, the company noted.
"The Middle Orange River region, which is known for its large and high-valued gem-quality diamonds, is a key area of focus for Rockwell, with the Company targeting a processing capacity of 500,000 m3 per month of quality gravels," said Campbell.