Australian Joint Venture - Update

RNS Number : 6536Q

Red Rock Resources plc

01 March 2021

 

 

Red Rock Resources PLC

("Red Rock" or the "Company")

Australian JV - Start of IPO Process and Update

1 March 2021

Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and base metals, announces an update in respect of Red Rock Australasia Pty Ltd ("RRAL") a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Gold Fields of Victoria. Red Rock owns 50.1% of RRAL, with 49.9% being owned by Power Metal Resources plc (AIM:POW).  

Key points

· Canadian IPO process begins with appointment of legal counsel in Canada

· Following grant of first three licenses announced on 2^nd February 2021, a further seven applications are at an advanced stage of processing

· New application made for 227 sq km EL 45/5859 in Western Australia which will be subject to a ballot between RRAL and Rumble Resources Ltd

Red Rock Chairman Andrew Bell commented :

"With three key licenses now granted, and better visibility on the processing pipeline on the remaining applications, we have initiated the process which we intend to lead to a listing of certain core assets by IPO on the Canadian capital markets. 

This decision is a milestone for the Company and for its partner, Power Metal Resources plc.  Three months of intensive work now begins to advance this process.

The opportunity arose to apply for ground in Western Australia in an area currently attracting a high level of exploration interest for gold and base metals when Rio Tinto dropped its application. The application is close to licenses with which Red Rock originally listed in London, when the target was manganese, so we have some knowledge of the area, which now goes to ballot between the two applicants". 

FURTHER INFORMATION

Joint Venture Company - RRAL

RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc ("POW"). Paul Johnson, CEO of POW and Andrew Bell are directors of RRAL.

Granted Licenses

RRAL has been granted the three licenses nearest to the regional centre of Ballarat, namely EL007271 ("Blue Whale"), EL007281 ("Blue Chip"), and EL007285 ("Blue Ribbon").

These licenses cover 215 sq km west, south, east and west of Ballarat and cover high priority areas where RRAL has early drill targets that it is developing.

Applications

RRAL has lodged applications for sixteen new gold exploration license areas covering approximately 2,336 km² in the Victoria Goldfields of Australia as follows:

License Application Number	Project Name	Area (km2)
EL007271 (granted)	Blue Whale	133
EL007281 (granted)	Blue Chip	74
EL007282	Blue Sky	489
EL007285 (granted)	Blue Ribbon	8
EL007294	Red Queen	130
EL007301	Mt Bute	85
EL007327	Blue Stocking	60
EL007328	Blue Yonder	168
EL007329	Evergreen	486
EL007330	Blue Angel	202
EL007385	Sardinia	4
EL007460	Kilmore West	349
State land within EL007271 [EL007505 EL007506 EL007507]		[9 9 8]
EL007540* (3 competing applications)	Outer Ballarat	148
Total		c 2,336

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

The following application has been made in Western Australia:

EL45/5859 (One competing application)

Pilbara

227

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information, please contact:

Andrew Bell 0207 747 9990  Chairman Red Rock Resources Plc

Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396  NOMAD Beaumont Cornish Limited

Mark Treharne 0203 700 2500   Broker Pello Capital Limited

 

END

 

 

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