Convertible Loan Notes

RNS Number : 9811L

Red Rock Resources plc

02 January 2019

 

Red Rock Resources PLC

("Red Rock" or the "Company")

Series 2 Convertible 10% Loan Notes

Series 1 Convertible 10% Loan Notes - Renewal and Redemptions

2 January 2019

Red Rock Resources Plc, the natural resource development company with interests in gold, minerals and steel feed materials, announces, further to the announcement on 2^nd November 2018, a further update on the Convertible Loan Notes ("Series 1 Notes") with accompanying Warrants ("Warrants") issued to high net worth investors in November and December 2017, and announced on 10 November 2017, 12 December 2017, and 14 December 2017.

The Series 1 Notes were due for redemption or conversion into new Red Rock shares ("Shares") at a price of 0.8p per Share, with a redemption date of 19 December 2018. The Warrants were issued on the basis of 1 Warrant for every 2 Shares to be issued on conversion, with an exercise price of 1.4 pence per Share and a life to 30 April 2019.

It was announced on 2 November 2018 that holders of £575,000 principal value of Series 1 Notes, out of £950,000 of Series 1 Notes outstanding, had applied to renew their Notes for twelve months to a new redemption date of 19 December 2019 on the same terms, with the Warrants of renewing Noteholders similarly extended on the same terms by one year to expire on 30 April 2020.  

A holder of a further £10,000 of Series 1 Notes has elected to renew on the same terms, and subscriptions have been received for £325,000 of Series 2 Convertible Notes to be issued on the same terms as the Series 1 Notes and to a maximum principal value of £500,000.

£585,000 of the Series 1 Notes and £325,000 of Series 2 Notes, for both of which the redemption date is now 19 December 2019, are therefore now outstanding.

£50,000 of the Series 1 Notes were exercised during the year, and £365,000 have been redeemed.

Andrew Bell, Chairman, comments: "As noted in November, Red Rock remains an attractive destination for funds in poor market conditions and it is our aim that the Company will continue to remain liquid at a time when attractive opportunities may present themselves."   

The Notes of each series were issued at par and are convertible into Shares at a price of 0.8 pence per Share. Each Note has a denomination of £1,000 and is thus convertible into 125,000 new Shares in the Company. Conversion may take place at any time up to the final redemption date.

Each Note holder also received 62,500 Warrants for each Note subscribed. Each Warrant entitles the holder to subscribe for Shares at any time up to the date of expiry at a price of 1.4 pence per Share.

The interest rate on the Notes is 10% per annum, accruing monthly.

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 Limited

 

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