Rockwell Diamonds Inc. announced that it has entered into a conditional agreement to acquire certain alluvial diamond properties and associated plant and equipment from Bondeo 140 CC and its affiliates which own and operate alluvial diamond properties for a total consideration of $28.5 million (ZAR 284.2 million). The assets are contiguous to Rockwell's existing properties and will significantly enlarge its operating and resource base, thus leveraging the Company's growth in the Middle Orange River ("MOR") region. The total acquisition consideration comprises of $12.0 million (ZAR120 million) for the mineral rights and three fit-for-purpose processing plants with such consideration payable on the closing date.

The remaining $16.5 million (ZAR 164 million), allocated to earthmoving fleet and other associated equipment, is made up of $3.9 million (ZAR38.6 million) to be paid to the sellers over a period of ten months in equal instalments and the balance relating to equipment leases and hire purchases, intended to be refinanced on similar terms with South African financial institutions and /or current mobile fleet and equipment supply partners. The transaction is subject to conditions precedent, including customary regulatory approvals and the company completing a financing on or before March 31, 2015 in order to raise the $12.0 million (ZAR 120 million) payable on the closing date. Rockwell expects that the closing will occur in the second quarter of 2015, subject to the satisfaction of all conditions precedent.