Issue of Convertible Loan Note

RNS Number : 4084B

Red Rock Resources plc

06 January 2015

 

Red Rock Resources Plc

("Red Rock" or the "Company")

Issue of Convertible Loan Note

6 January 2015

Red Rock Resources Plc, the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast, announces that it has agreed to issue an unsecured convertible loan note of $550,000 ("Convertible Note") to Magna (MG Partners II Ltd., an affiliate of Magna).

The notes yield 4% per annum, have a maturity of 12 months, and are able to be converted into ordinary shares from 60 days after issue.  The conversion price on each conversion will be the lower of a 10% discount to the average of the three lowest VWAPs over the 15 trading days immediately preceding the date of the conversion, or a price per share of 0.5p.  The notes fall due on 1 January 2016 if not previously converted.      

The proceeds of the Convertible Note will be applied to gold exploration activities in Ivory Coast and for working capital purposes.  

Company Chairman Andrew Bell comments:

"This convertible loan note with Magna diversifies our funding options and enables us to start 2015 strongly as we begin gold exploration in Ivory Coast. We also await conclusion of the sale of our gold assets in Colombia, which will further strengthen our finances. Now that we are out of the holiday period, we shall concentrate on speeding up the paperwork for that sale. " 

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 Communications

 

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