Financing Update

RNS Number : 9174H

Red Rock Resources plc

19 March 2015

 



Red Rock Resources Plc

("Red Rock" or the "Company")

Financing Update

19 March 2015

Red Rock Resources Plc, the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast, announces a financing update.

Highlights:

o  Total funds raised of £1,000,000 before expenses to new shareholders

o  Proceeds of the placing to be used for gold exploration in Ivory Coast as well as the prepayment in full of YA Global ("Yorkville") convertible and debt and UK Bond Network ("UKBN") bonds

o  Takes £842,237 gross (£650,515 net) of debt and convertible debt off the balance sheet

Financing Details:

The Company has completed a placing with clients of Cornhill Capital Limited ("Cornhill") of 1,538,461,538 ordinary shares of 0.01p each ("Shares") in the Company at a price of 0.065p per Share (the "Placing"). The gross proceeds of the Subscription are £1,000,000.

The proceeds of the Placing will be applied towards funding exploration activities in Ivory Coast, and fully settling existing debt facilities with Yorkville and UKBN.

The settlement amount of the Yorkville debt facility will be approximately £442,128, and the final settlement amount of the UKBN facility will be £400,109 gross (£208,387 net of cash escrow).  

The Company also announces the appointment of Cornhill as joint broker.

Red Rock further announces that MG Partners II Ltd., which is an affiliate of Magna, has converted $7,500 of its $550,000 unsecured Convertible Notes, which are due for repayment on 1 January 2016, into 7,598,784 ordinary shares of 0.01 pence each ("Conversion Shares") in the Company under the terms of the Convertible Note Instrument ("Convertible") as announced on 6 January 2015, at a price of 0.066554p per Conversion Share (the "Conversion").

Following the Conversion, MG Partners II Ltd. will hold 7,598,784 ordinary shares in the Company representing 0.1890% of the Company's enlarged ordinary issued share capital.

Application has been made to the London Stock Exchange for the Shares and Conversion Shares, together 1,546,060,322 new ordinary shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. Dealings are expected to commence at 8 a.m. on 26 March 2015.

Following the Placing and the Conversion, the Company's total issued ordinary share capital will be 4,019,816,506 ordinary shares of 0.01p. The above figure of 4,019,816,506 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

Chairman Andrew Bell comments:

"We were given the opportunity to place stock for cash to a number of new high net worth investors, and repay in their entirety the loan and convertible loan facilities from our two major finance providers. The transformative effect of that on our balance sheet gives the Company greater stability, removes a potential overhang of stock, and provides working and exploration capital beyond any receipts from the expected sale of the Colombian assets.

Our focus on Ivory Coast exploration means that we need to schedule and organize our activities there for the remainder of 2015, and we will now have the flexibility to do this immediately.

This move also enables us to achieve a key objective in our repositioning of the Company within the sector, and repay completely all outstanding Yorkville debt facilities as well as the corporate bonds issued by UKBN in 2014.  We would like to thank both Yorkville and UKBN for supporting the Company over the past years. 

We caution that this decision should not be interpreted as indicative of any change in our view as to the likelihood of the completion of our Colombian asset disposal, which appears to be close to execution with additional updates to be released as appropriate. 

We welcome new and committed investors on to the Company's shareholder register, and are encouraged by their support for the Company's operational strategy in 2015 that allows us to settle in full these liabilities ahead of schedule.  We further welcome the addition of Cornhill Capital as joint corporate broker and we look forward to having them demonstrating the upside potential in the Red Rock investment thesis to new investors.

These new investors as well as the Red Rock Board believe that significant value and investment potential exists across our portfolio which includes several assets that could justify today's valuation levels.  Our mission in the coming months remains the unlocking of this value and generating outstanding investment returns."             

For further information, please contact:

Andrew Bell 0207 747 9990 or 0776 647 4849                            Chairman Red Rock Resources Plc

Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396         NOMAD Beaumont Cornish Limited

Jason Robertson 0129 351 7744                                                Broker Dowgate Capital Stockbrokers Ltd

Christian Pickel 0203 128 8208                                                 Media Relations MHP Communication

 

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