March 24, 2010 Rockwell Announces Completion Of Highly Successful Rights Offering
March 24, 2010 - Vancouver, BC. -- Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces that the previously announced rights offering has successfully completed with 100% of the offered rights being subscribed with applications for additional shares which could not be fulfilled because they exceeded the maximum. Pursuant to the rights offering, Rockwell will issue 92.7 million common shares at a subscription price of C$0.05 per Common Share yielding gross proceeds of approximately C$4.6 million (ZAR 33.2 million). Pursuant to the rights offering Daboll Consultants Limited and a small number of other investors will purchase from the Company approximately 57 million shares at a price of $0.065 per share, raising a further C$3.7 million (ZAR 26.6 million). Rockwell now has an issued capital of approximately 520 million shares.
This concludes the initial steps of the Company's previously announced plans to recapitalize the balance sheet, modernize and re-comission the Wouterspan operation which was placed on care and maintenance in January 2009, and identify value add merger and acquisition targets such as the recently announced Etruscan acquisition. The rights offering comprised the final part of a process which resulted in approximately C$16.9 million (before costs) being raised through a combination of private placement and rights offering.
John Bristow, CEO commented "The Board is most encouraged by the support shown by the Company's shareholders to the extent that it was oversubscribed. This is another step in the Company's strategy to become a leading alluvial gemstone miner through growth and acquisition with support from our existing and new strategic shareholders. With the planned re-commissioning of Wouterspan and proposed acquisition of Etruscan's Blue Gum diamond project, Rockwell is poised for significant near term growth."
For further details on Rockwell Diamonds Inc., please visit the Company's website at www.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
John Bristow President and CEO
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