DRC and Gold Assets Update

Red Rock Resources plc

06 March 2024

 

Red Rock Resources PLC

("Red Rock" or the "Company")

DRC and Gold Assets Update

6 March 2024

Red Rock Resources Plc, (AIM:RRR) ("Red Rock" or "the Company"), is a natural resource development company with interests in gold, base metals, battery metals, and hydrocarbons principally in Africa and Australia.

This release is an update in relation to (a) the Company's arbitration in the Democratic Republic of Congo ("DRC") with respect to the US$10m claim the Company is pursuing in country for its interest in the VUP copper-cobalt joint venture, and (b) certain of the Company's gold assets and opportunities.

DRC

On 5^th February 2024 Red Rock noted that:

(1)  The Company's 100% owned subsidiary in the DRC had, obtained in 2022, an executory judgment for $2.5m (being 50.1% of $5m paid to local partner by a buyer), and the result of the Arbitration hearings held in Kinshasa in 2022 in order to obtain $7.5m (being 50.1% of the $15m still to be paid by the buyer) was pending;

(2)  A draft of the arbitration award had been received by the Company and awaited finalisation and release;

(3)  The hiatus caused by the Presidential and Parliamentary elections in the DRC was over, and the finalisation of the arbitration award and payment was resuming; and

(4)  A further update was to be provided as soon as possible.

We are in constant communication with our country representative, our lawyer, and our local partner and expect senior management to be in the DRC this week or next with a view to finalisation.

Kenyan Gold Assets

A Red Rock team is in Kenya working on the renewal of the Company's two licences. The Company has a 723,000 oz gold Mineral resource, and a tailings project, and renewal will allow the next phase of exploration to proceed with the aim of increasing the resource to +1 million ounces.

Ivory Coast

Following expressions of interest by third parties, as previously noted, the Canadian consultants Watts, Griffis and McOuat have been commissioned to produce a short report on the seven gold licences held or applied for by the Company's subsidiary, and will be distributing this at the PDAC Conference in Toronto this week. Each licence is for an area approaching 300 square kms, and to do justice to these licences, felt to be in some cases highly prospective, all possibilities for sale, farm in or joint venture, either of parts or of the whole of the portfolio, are being considered.   

Chairman Andrew Bell comments:

"Other gold assets or prospects, for example in Australia and Burkina Faso, have been dealt with in recent announcements, but Kenya and Ivory Coast are among the best projects for substantial sized Resources. In the DRC we have made considerable progress but we consider that co-ordination of the final steps requires our presence in Kinshasa. What should have been the simplest of matters, obtaining our share of the sales proceeds of an asset bought and paid for in 2018, has taken far too long but I am confident that we will prevail and receive the monies owed.

Gold is now trading at an all time high price, fulfilling predictions made for many months, and this will present us with more opportunities to crystallise and establish the value of our diversified gold portfolio, that contains early stage exploration, established Resources, and early and advanced stage development projects, as well as royalties." 

For further information, please contact:

Andrew Bell 0207 747 9990                                                       Chairman Red Rock Resources Plc

Bob Roberts 0203 8696081                                                        Broker Clear Capital Corporate Broking

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