Red Rock Resources plc Progress Report - African Exploration Assets (4789R)
15 June 2018 - 4:00PM
UK Regulatory
TIDMRRR
RNS Number : 4789R
Red Rock Resources plc
15 June 2018
Red Rock Resources PLC
("Red Rock" or the "Company")
Progress Report - African Exploration Assets
15 June 2018
Red Rock Resources Plc, the natural resource investment and
development company, announces, further to its announcement of 29
March 2018, an update on progress on the proposed Joint Venture
with Cobalt Blue Limited ("Cobalt Blue") previously announced on
the 27 September 2017.
RRR and Cobalt Blue continue to work together on due diligence,
are making good progress with local documentation and background
research, and expect to have a further announcement in due
course.
Red Rock also announces, further to its announcement of 26 June
2015, that a revision to its agreement with Kansai Mining
Corporation ("Kansai") of 20 June 2015 ("2015 Agreement") was
executed on 11 June 2018 ("2018 Agreement"). The effect of the
revision is that Kansai exchanges its 25% carried interest in the
mineral assets of Mid Migori Mining ("MMM" and "Assets") under the
2015 Agreement for a $50,000 payment, leaving Red Rock with a 100%
interest. In the event of a renewal or reissue of licenses covering
the Assets the Company will within three months make further
payments, subject to such renewal or resissue not being on unduly
onerous terms, as follows: (1) $2.5m payable in cash, (2) a $1m
promissory note payable 15 months after issue, and (3) GBP500,000
of warrants into Red Rock shares at a price 20% above their average
closing price on the three trading days prior to issue.
Red Rock and MMM instigated in May 2015 proceedings for judicial
review in relation to a Ministerial decision which purported to
deprive them of the Assets. Those proceedings are not
concluded.
Andrew Bell, Chairman of Red Rock comments: "Our local
counterparties in Congo have had to spend much time resolving a
dispute involving major companies operating in the country, which
has understandably affected their ability to follow up with us
expeditiously.
With Cobalt Blue we have continued to work patiently on behalf
of the Joint Venture, and remain confident of progress.
The solution arrived at in relation to MMM gives us the
flexibility of action that will maximise the chance of our being
able to obtain license renewal and then to progress the
project."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc
Scott Kaintz 0207 747 9990 Director Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0207 374 2212 Broker First Equity Ltd
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END
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