Rockwell Diamonds has announced the loss of C$13-million during the 12 months ending on February 28. It added that it has continued to incur losses subsequent to year end.

Rockwell Diamonds, which mines high-value diamonds in South Africa, saw a sharp drop in revenue at the end of 2008 due to the international financial crisis.

The company has also been involved in a battle with shareholder Pala Investments Holdings, which launched a proxy contest to have the company's board replaced and the shareholder rights plan removed. Rockwell shareholders voted down both bids last week.

Rockwell Diamonds’ board is now striving to raise C$4-million to keep it afloat. At the end of the fiscal year, the company's current assets exceeded its current liabilities by $0.6-million. Total assets exceeded total liabilities by $70.4-million.

Rockwell stated: “The risk that cash and working capital will not be sufficient to fund the continuing losses indicates that a material uncertainty exists which may cast substantial doubt on the ability of the company to continue as a going concern.”

The diamond company’s directors have initiated a process towards either a rights offering or a private placement. They stated that they have “identified and communicated with current investors and potential new investors to ensure that the desired investment is raised.”