Equity issue, further re Migo

RNS Number : 3247D

Red Rock Resources plc

30 November 2009

 



RED ROCK RESOURCES PLC

Issue of Equity; Further re Migori and Jupiter Mines

Dated: 30 November 2009

Red Rock Resources plc ("Red Rock" or the "Company") the mining exploration and development company focussed on advancing iron ore, manganese and uranium projects in Australia and East Africa, announces that on 27 November 2009 it placed 26,900,000 new ordinary shares of 0.1 pence each ("Shares") in the capital of the Company at a price of 1.35 pence per share, conditional on the Shares being admitted to trading on AIM. The proceeds of the subscription are approximately £363,150 before expenses.

Regency Mines Plc ("Regency"), the Company's founder investor, subscribed for 4,450,000 of the Shares at a price of 1.35 pence per share to minimise dilution at this level and intends to retain its holding for investment. As a result, Regency is now interested in 141,598,000 Ordinary Shares in the Company, representing 26.11 per cent. of the Company's enlarged issued ordinary share capital. 

The proceeds of the placement are intended to be utilised to take advantage of business opportunities that 
have arisen in connection with the Company's interests in the Migori gold project in Kenya and adjacent areas. As announced on 26 November, the Company has begun to implement an active drilling programme, and sees opportunities both to increase the gold resources on the property and to increase its interest in those resources. The Company has now subscribed for a total 10,000,000 shares (8.86 per cent) of Kansai Mining Corporation ("Kansai") at a cost of C$100,000 and expects to make further purchases. Kansai is the Canadian company with which on 14 August 2009 the Company entered into a sale and purchase agreement to acquire up to 60 per cent of the issued share capital of Kansai's wholly owned subsidiary company Mid-Migori Mining Company Ltd ("MMM") which owns the beneficial title and mining rights to the Migori Gold Project, 15 per cent upon payment of an initial consideration, and 45 per cent upon completion of a bankable feasibility study.

Red Rock's intention is to enhance significantly its attributable interest in the Migori gold belt and its exposure to the gold sector. 

Following the issue of the new Shares the Company's total issued ordinary share capital will be 542,250,471 ordinary shares of 0.1p. Application has been made to the London Stock Exchange for the new Shares, which rank pari passu with the Company's existing issued ordinary share capital, to be admitted to trading on AIM. Dealings are expected to commence at 8.00 a.m. on 4 December 2009.

The Company's 25.2 per cent owned associate company Jupiter Mines Ltd (ASX: JMS)("Jupiter") today announced drilling results showing broad widths of mineralisation in multiple intersections of high grade magnetite at its Mt Ida tenement in Western Australia, in a mineralised zone 1.4km by 6.5km at surface. The high magnetic areas remain untested, demonstrating the significant potential for magnetite mineralisation. Test work on some drill composites from the 2008 programme produced premium grade magnetite concentrates exceeding 70 per cent iron with very low levels of impurities. Further details of this significant development are contained  in the Jupiter announcement at: 
http://www.asx.com.au/asxpdf/20091130/pdf/31mfmjdnh112d3.pdf 

Under the terms of its 2006 agreement with Jupiter, Red Rock is entitled to a 1.5 per cent gross production royalty on all ore production from Mt Ida. 

Enquiries:

Red Rock Resources plc
Andrew Bell, Chairman	0207 402 4580/07766 474849
John Watkins	07768 512404
Nominated Adviser
Blomfield Corporate Finance Ltd
Peter Trevelyan-Clark/Ben Jeynes	020 7444 0800
Broker
Simple Investments Ltd
Nick Emerson, Renato Rufus	01483 413500
Public Relations
Lothbury Financial Limited
Ron Marshman	020 7011 9411

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

 

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