Ascot Diamonds is offering to buy the three bankrupt South African subsidiaries, and an additional Cayman-based entity of Canadian miner, Rockwell Diamonds.
A statement from Rockwell states that, Ascot Diamonds (the buyer) and their attorneys met with the PLs several times, and are now making a detailed proposal by creditors in a comprehensive compromise proposal to the PLs. The move, which according to the company chief executive, Willem Jacobs is a viable solution to achieve a sale transaction and therefore, a higher recovery value for creditors.
“That purchase offer for the three subsidiaries therefore remains valid, and the PLs are in active discussion with beneficiation joint venture partner, Diacore, to advance such a proposal”, Rockwell stated.
Rockwell also reported that Ascot had confirmed its additional offer to the company to subsequently acquire N9C Resources, one of Rockwell’s Cayman Islands subsidiaries in a separate transaction.
All mining and operational activities have ceased since the BRPs successfully filed to have the three subsidiaries back into provisional liquidation on September 6, and placed the break-even Wouterspan plant on care and maintenance.
The return date for hearing on the liquidation order is set for March 16.
In the mean time, a formal liquidation application for two subsidiaries of Rockwell Resources, HC van Wyk Diamonds and Saxendrift Mine, has been postponed to March to give Ascot ample time to negotiate a deal with the provisional liquidators (PLs) Honey Attorneys in Bloemfontein, South Africa.