Diamond mining company Rockwell Diamonds and dissident shareholder Pala Investment Holdings are continuing to wage battle in anticipation of a crucial shareholders meeting.

On Friday, the Supreme Court of British Columbia denied a petition from Pala that the executive directors' proxy for a June 17 shareholders meeting be struck down, constituting a victory for Rockwell Diamonds’ executive directors, who Pala wants voted off the board.

The meeting was called by Pala with the intention of calling for a vote on its proposals to replace the diamond company’s board, remove the company's shareholder rights plan and launch a rights offering in order to take up any shares that are unsubscribed.

On the other hand, Pala scored after independent advisory service RiskMetrics recommended to shareholders to vote in favor of the revisions raised in Pala's proxy circular.

Monday afternoon saw a 54% leap in Rockwell shares to C$0,10 a unit.

Pala accuses Rockwell Diamonds’ top executives of “lack of leadership,” while the latter – CEO John Bristow, chairperson David Copeland and Randgold Resources CEO Mark Bristow - claim that Pala is attempting a cashless takeover.

Last September, Pala attempted a hostile takeover offer for Rockwell Diamonds and subsequently withdrew it. Rockwell operates the Holpan, Klipdam, and Saxendrift diamond projects in South Africa.