Issue of Convertible Note. Cancellation of options

RNS Number : 3630O

Red Rock Resources plc

18 September 2013

 



Red Rock Resources Plc

("Red Rock" or the "Company")

Issue of Convertible Note and Options Cancellation

18 Sept 2013

Red Rock announces that it has issued an unsecured convertible loan note of £300,000 ("Convertible Note") to YA Global Master SPV, Ltd. ('YA Global'), which is advised by Yorkville Advisors LLC ('Yorkville'). 

The notes yield 10% per annum, and are convertible into ordinary shares for up to one year.  The price of conversion will be determined by a formula equal to 97% of the six lowest daily volume weighted average prices during 12 consecutive trading days beginning on the first trading day immediately following the delivery of a notice of conversion by the bondholder.  The notes fall for repayment on 18 September 2014 if not previously converted.

The proceeds of the Convertible Note will be applied towards activities in Kenya and working capital for the Company. 

Simultaneously, the Company announces that the remaining 12,000,000 options issued at prices between £0.02 and £0.05 to Company Board Members, and announced on 29 January 2013, have been waived by their respective holders.   This action nullifies the entirety of the 39,000,000 options previously announced on that date.

The Company will issue an update on its activities later this week.

Company Chairman Andrew Bell comments:

"Once again, the Red Rock Board and senior staff have demonstrated their willingness to support the firm in its financing efforts.  By sacrificing potential short-term personal upside in the form of employee options, we've created additional flexibility to fund the business as we look to drive our on-going sale processes in Colombia and Greenland towards a conclusion."    

For further information contact:

Andrew Bell 0207 747 9990 or 0776 647 4849	Chairman Red Rock Resources plc
Sandra Spencer 0207 747 9990 or 0775 766 0798	Investor Relations Red Rock Resources plc
Colin Aaronson / David Hignell 020 7383 5100	NOMAD Grant Thornton UK LLP
Nick Emerson 01483 413500	Broker SI Capital Ltd.

 

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