Colombia Update

RNS Number : 8033O

Red Rock Resources plc

05 July 2010

 



RED ROCK RESOURCES PLC

Colombia Agreement and Progress Report

Dated:  5 July 2010

Red Rock Resources plc ("Red Rock" or the "Company") the mining exploration and mineral investment company with interests in steel feed, uranium and gold, announces that pursuant to the Funding and Co-operation Agreement (the "Agreement") with Mineras Four Points SA ("MFP") announced on 10 June 2010, Red Rock has procured a bank loan for MFP of two million U.S. dollars (the "Loan"), of which one million dollars was drawn down by MFP on 2 July 2010 . It is expected that the balance will be drawn down within three months.  

The Loan carries interest at 5% per annum on the average outstanding amount and will be repayable on 30 June 2013. The purpose of the Loan is to enable MFP to invest in production and mining equipment at the El Limón and La Aurora gold mines in the province of Antioquia, Colombia.

The Loan and interest payments under the Agreement are guaranteed by RRR by way of a back to back loan with the advancing bank. In consideration of the obligations assumed by Red Rock under the Loan guarantee, Red Rock has been granted charges over the gold production of MFP and over the existing issued share capital of MFP. 

The El Limón mine has been in production over a period of 60 years, from a North-South trending vein, dipping 50 degrees to the West, and with a strike length of approximately 750m. Seven levels have been developed. Currently the mine ends in the South at the intersection with an East-West fault. In the last two weeks fieldwork conducted by the Company's consultant geologist in Colombia was able to demonstrate continuity of the mineralised vein to the South of the fault. The vein was identified in outcrop and shallow workings on the other side of a fault breccia of approximately 50 to 60 metres, displaced 30m to the East and continuing Southward with a strike of 170 degrees and with a dip of 60 degrees West.

For further information contact:

Andrew Bell	0207 402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Peter Trevelyan-Clark/ Ben Jeynes	020 7444 0800	Religare Capital Markets	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker
Ron Marshman/ Justine James	020 7245 1100	Hansard Communications	Public Relations

Updates on the Company's activities are regularly posted on its website www.rrrplc.com.

 

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