Acquisition of Share Interest, Issue of Shares

RNS Number : 6633W

Red Rock Resources plc

28 April 2016

 

Red Rock Resources plc

("Red Rock" or the "Company")

Acquisition of Share Interest

Issue of Shares

28 April 2016

Red Rock Resources plc, the mining and exploration company with interests in gold and oil production, announces that it has co-ordinated the acquisition of 12,013,173 shares of Goldstone Resources Ltd ("GRL")(AIM:GRL) by itself and Metal Tiger plc ("MTR")(AIM:MTR)(the "Acquiring Parties").

The acquired shares amount to 19.29% of the issued share capital of GRL, and upon completion of the acquisition Red Rock will own 6,006,587 shares (9.645%) of GRL.

GRL is an exploration company with exploration skills that focus on West and Central Africa. The assets include controlling interests in the Homase/Akrokerri project adjoining and to the East and North of AngloGold Ashanti's Obuasi mine in the Ashanti Gold Belt in Ghana. The project has 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 six months to 30 June 2015 GRL reported pre-tax losses of £813,206 and had as at that date net assets of £730,423.   

The consideration for the acquisition by the Acquiring Parties is £225,000, and is payable half in cash (the "Cash Consideration") and half in new shares of Red Rock to be issued at a price of 0.52777328 pence per Red Rock share, being the VWAP (volume-weighted average price) at which Red Rock shares traded on the AIM market in the five trading days to 26 April 2016 (the "Share Consideration").

On completion (expected to occur on 3^rd May 2016), Red Rock will issue and allot to the vendor, Unity Mining Ltd (ASX:UML), a company listed on the Australian Stock Exchange, 21,315,971 new Red Rock shares credited as fully paid as the Share Consideration. The Cash Consideration will be paid by MTR.

In addition, Red Rock will issue to the vendor 21,315,971 options giving the right within two years to exercise each option into a new Red Rock share at a price of 0.66 pence per share.      

At the close of business on 27 April 2016 the price of GRL shares was 1.65 pence and the market capitalisation of GRL was £1.027m.

Andrew Bell, Chairman, comments: "Our key focus remains improving net cash flow, but at this point in the commodity market cycle valuable opportunities exist, and it is our policy to pursue them where this can enhance value and improve our project quality, without increasing recurrent costs. In Goldstone, we see the opportunity to build our gold footprint in West Africa towards critical mass, in a company with a technically capable management. We look forward to working with the Goldstone board in driving Goldstone forward, and further announcements will be made in due course."

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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