[miningmx.com] — Michael,
First off, thank you for bringing the Pala bid and its deficiencies especially as it relates to our South African shareholders, BEE partner and regulators to the attention of all. The one element I would like to provide you with clarity on is the relationship between Rockwell Diamonds (RD) and Hunter Dickinson Services Inc. (HD), and the business model of HD.
HD does not own shares in any of the companies it provide services to, in fact on the contrary each of the public companies in the “HD Group” owns 1 share of HD and holds a contract for services with HD. By virtue of that single share ownership and the contract, RD procures the services of HD on a cost recovery basis and HD does not make a profit on the provision of these services.
HD’s objective has been and continues to be, the establishment a mining services company which can provide a broad spectrum of mining related services (therefore geology, engineering, environmental, socio-economic, financial accounting and reporting, investor relations etc.) to its associated companies. Our objective is to provide these services on a basis which takes advantage of economies of scale, experience and expertise and generates value in the public company not in a private holding or management company.
The principals of HD being myself and my senior associates (see our website www.hdgold.com) own shares in the individual pubic companies in our own personal capacity, therefore we are most interested in driving share price appreciation; our financial interests are aligned with that of the public company shareholders.
HD does not accumulate any share position in RD through the provision of services, rather it assists RD by providing those services on a basis that RD cannot obtain them elsewhere. RD is also not tied into HD in a manner which excludes the use of outside services; also we/HD encourage all the companies to commence a process whereby they can facilitate the provision of many of these services eventually on their own as they grow and become independent.
HD is there to provide services and support, not to hinder growth or impede independence; Great Basin for example has become completely independent of HD in terms of the services, the contract and the share.
Again thank you for your article.
Ron Thiessen
Ronald W. Thiessen, President
Hunter Dickinson Inc., Vancouver, Canada
