Acquisition of Further Interest in Goldstone

RNS Number : 5159F

Red Rock Resources plc

28 July 2016

 

Red Rock Resources plc

("Red Rock" or the "Company")

Acquisition of Further Interest

in Goldstone Resources Ltd

28 July 2016

Red Rock Resources plc, the mining and exploration company with interests in gold and oil production, announces that is has agreed to acquire as part of a placing of shares by GRL, and subject to GRL shareholder approval at a general meeting, a further 3,857,400 shares of Goldstone Resources Ltd ("GRL")(AIM:GRL) at a price of 2.5 pence per share. This acquisition, together with the acquisition announced on 28 April 2016, would on completion bring Red Rock's total holding in GRL to 9,863,987 shares. Following completion, Red Rock's holding in the issued shares of GRL would remain at 9.645%.

The Company will also receive 3,857,400 GRL Warrants with an exercise price of 5p and a life of two years.

Andrew Bell, Chairman, comments: "Our investment of £112,500 in 6,006,587 Goldstone shares in April has a value today of £165,165 and has set in motion a chain of events that has already added value to and new interest in GRL. As GRL puts itself on a sound footing with a £1,000,000 financing, we look forward to the immediate resumption of an active drilling programme to expand the gold Resource of the company. We are glad of the opportunity to follow our investment and increase our gold footprint in West Africa in a company with promising assets and a technically capable management."

Other Information

GRL is an exploration company with exploration skills that focus on West and Central Africa. The assets include the Homase and Akrokerri projects to the East and North of AngloGold Ashanti's Obuasi mine in the Ashanti Gold Belt in Ghana. These projects have a JORC Mineral Resource of 602,000 oz of gold at 1.77 g/t. Other licenses are held in Gabon and Senegal.

In the year to 31 December 2015 GRL reported pre-tax losses of USD 1,297,923.   

The consideration for the acquisition is £96,435 and is payable in cash subject to the approval of GRL shareholders to the necessary authorities at the Annual General Meeting of GRL to be held on 28 July 2016.

At the close of business on 27 July 2016 the price of GRL shares was 2.75 pence and the market capitalisation of GRL was £1.79m.

Red Rock will pay for the acquisition from available cash resources and facilities.

The information contained within this announcement is deemed to constitute inside information under the Market Abuse Regulations (EU) No 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 0129 351 7744                                                Broker Dowgate Capital Stockbrokers Ltd

 

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