Rockwell Diamonds Inc., a mid-tier diamond mining and development company listed in Canada, has announced that it will be acquiring certain alluvial diamond properties and associated plant and equipment from Bondeo 140 CC and its affiliates in the Middle Orange River region of South Africa for a total consideration of CAD 28.5 million.

Once the acquisition is finalised, Rockwell will get mineral rights and three fit-for-purpose processing plants, as well as earthmoving fleet and other associated equipment partly through direct payments and the remaining to be refinanced on similar terms with South African financial institutions and / or current mobile fleet and equipment supply partners.

The assets to be acquired are contiguous to Rockwell's existing properties and will significantly enlarge its operating and resource base.

James Campbell, CEO and President said:"We are delighted to have concluded this agreement as it represents an exciting growth platform for Rockwell. These new assets offer economies of scale, with the potential to reduce the volatility of our quarterly production results and take us above our target of processing 500,000m3 per month."

Dundee Capital Markets is assisting Rockwell in the transaction.