DRC Projects Update

RNS Number : 4578S

Red Rock Resources plc

16 November 2021

 

Red Rock Resources PLC

("Red Rock" or the "Company")

DRC Projects Update

16 November 2021

Red Rock Resources Plc, the natural resource development company focussed on gold, but with developing interests in copper, cobalt, and other minerals, announces an update on its projects in the Democratic Republic of Congo ("DRC"), following its last update of 11 October 2021 and recent discussions held in the DRC with its geological and legal advisers.  

Highlights

Red Rock VUP Project (50.1%)

• Recent legal proceedings have been instituted by the Company's local partner, VUP SA, which relate to the Project assets 

• Red Rock has served an Ordonnance de Saisie Conservatoire (precautionary attachment) order on VUP and taken other measures locally to protect its interests

• Red Rock is obtaining legal advice in the UK on the remedies available to it through the London courts

• As at the 30 June 2020 balance sheet date, Red Rock was carrying the Project in its books at £583,000

Red Rock Galaxy Project (Luanshimba) (80%)

· Last batch of samples from 29 hole RC drill programme at ALS laboratory in South Africa with results awaited

· Key pyrite and chalcopyrite intercepts from last holes drilled mean that interpretation awaits return of final results, expected imminently

Other

· Red Rock is researching lithium opportunities in the DRC pursuant to co-operation agreements with US-based third parties

· Red Rock provided some initial support to the Administrators of Vector Resources Ltd, as announced on 21 December 2020, in order to assist a mediated outcome between the parties in relation to their Congolese gold assets. The Administrator continues to act and Red Rock continues to stand ready to assist.  

Red Rock Chairman Andrew Bell comments : "We are conducting due diligence on some potential co-operation with a U.S investor in the cobalt-copper space, and have also initialled a possible lithium joint venture.

The electric battery field is seen as an important one for both of us, and no metal has better prospects or is more critical than lithium. 

We continue to await the last lab results from our drilling at Luanshimba, and look forward to further exploration activity on the two licenses held by Congo Galaxy.

At another project, the Red Rock VUP Project, where we have been for some time in a holding pattern, I received, during the visit to the DRC from which I have just returned, and not from our partners but from a third party, information about developments in the last few days affecting us.

We regard this development as positive. We now begin to know what has been going on, so can act on that knowledge. A short summary of what is at this stage certain is given below.

Before I left the DRC we had put in place, after consultations with different firms, what we believe will be an effective DRC legal team for our purpose, and had several teams working on the professional translation of over 170 pages of documentation in London.  

Our vigour in taking prompt action and obtaining satisfaction where our interests have been threatened in the past, and our record of success, should be a deterrent to those thinking they can take our assets. Impunity does not exist any more; neither in the DRC, nor certainly in London. We are confident in our position morally, and believe that remedies will be available which may be of substantial benefit to shareholders. We will of course provide more detail on this the moment we have finished our legal assessment." 

Background to VUP Developments

As announced on 6 March 2019 the Company through its local subsidiary had signed a joint venture agreement with a Congolese party, Vumilia Pendeza SA ("VUP") formalizing a joint venture over certain copper-cobalt assets ("the JV Assets") in Katanga and requiring the setting up of a joint venture company, and at the same time had signed the Statutes of the joint venture company. Red Rock owned 50.1% of the joint venture and of the designated joint venture company.

It has indirectly come to the attention of the Company that its local partner VUP on 20 October 2021 served a Procès-Verbal de Saisie-Attribution de Créances (similar to a garnishee order in our system)(the "Order") on parties including Kamoto Copper Company SA, a subsidiary of Glencore PLC, claiming a principal sum of $15,000,000 in respect of a purported surrender by VUP of the JV Assets and some others, for $20,000,000 compensation, to La Générale des Carrières et Mines ("Gécamines"), a state-owned company in the Democratic Republic of Congo, under the terms of a purported Amicable Termination Transaction Protocol ("Protocol"). The Protocol was stated to have been signed on 4 December 2019, notarized on 29 September 2021, and come into enforceable form on 5 October 2021, and to have been entered into in the framework of discussions by Gécamines with a third party. 

Red Rock is seeking advice in the Congo and in London on the various remedies available to it, and has obtained an Order against VUP which protectively seizes 50.1% of the $5,000,000 understood to have been paid so far.

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

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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