Nelesco 318 Proprietary Limited entered into a purchase and sale agreement to acquire certain non-core assets from Rockwell Diamonds Inc. (TSX:RDI) for approximately ZAR 140 million on December 22, 2016. As per the terms of the agreement, Nelesco 318 Proprietary Limited will acquire certain assets and assume certain liabilities for cash consideration of ZAR 45 million and also assume certain rehabilitation liabilities of ZAR 70 million. In addition, the deferred taxes of ZAR 29 million arising on the 2015 purchase of Pioneer Minerals, being an accounting entry under International Financial Reporting Standards, will be reversed, thus reducing consolidated liabilities by a total of ZAR 99 million. Payment will be in three tranches, the first being ZAR 20 million upon the completion of certain suspensive conditions, expected by January 31, 2017, the second being ZAR 15 million due on completion of the registration of the Saxendrift farm in the name of Nelesco, and the balance of ZAR 10 million upon the completion of and consents to assign certain contracts, the Section 11 transfer approval of the mineral properties to the name of Nelesco as well as the consent of the Takeover Regulation Panel of South Africa. The agreement includes the transfer of 98 employees.