This follows the granting of an interim liquidation order against the company’s operating entities in South Africa, as announced on 24 March 2017.
A judge in Kimberley, South Africa, issued an interim liquidation order against three subsidiaries of the company.
The interim orders include Rockwell Resources RSA (Rockwell RSA), HC van Wyk Diamonds (HC van Wyk) and Saxendrift mine (Saxendrift).
The effect is that an interim liquidator will be appointed which will take control of the three companies, and will operate them in the best interest of creditors until the final hearing, currently scheduled for 22 June 2017.
The interim decision stems from an action by C-Rock Mining (C-Rock) which launched a liquidation application against Rockwell RSA, HC van Wyk and Saxendrift.
Rockwell Diamonds is opposing the liquidation application and believes that there are no grounds for granting the liquidation order.
The company has been advised by the TSX that its shares had been suspended, pending a delisting review.
In addition, the TSX have advised the Rockwell Diamonds that they will only consider the delisting review following the outcome of the final hearing for the liquidation application, which has been set down for 12 April 2017.
Given the above, Rockwell Diamonds is of the view that it is prudent to suspend trading of its shares on the JSE, until such time as the TSX has provided feedback on its delisting review.
Accordingly, the company has made application to the JSE to voluntarily suspend the trading of its shares until such time as the company obtains clarity from the TSX on its delisting review.
The JSE has agreed to voluntarily suspend the trading of the company’s shares on the basis that the suspension of its shares on the JSE be lifted as soon as the company provides the JSE with confirmation that the suspension on the TSX has been lifted.
Feature image credit: Rockwell Diamonds
(An aerial view of the Wouterspan mine plant)