Issue of Convertible Notes and Warrants

RNS Number : 3616Z

Red Rock Resources plc

14 December 2017

 

Red Rock Resources PLC

("Red Rock" or the "Company")

Issue of Convertible Notes and Warrants - Tranche 3

14 December 2017

Red Rock Resources Plc, the natural resource development company with interests in gold, steel feed materials and oil production, announces, further to the announcements of 10 November 2017 and 12 December 2013, that it has raised £290,000 by the issue ("Tranche 2") of £290,000 of Convertible Notes ("Notes") with accompanying Warrants ("Warrants") to a high net worth investor.

Andrew Bell, Chairman, comments: "The Tranche 3 placing completes the £1,000,000 Convertible Note issue. We welcome in this tranche the participation of an existing shareholder, value investor Peter Gyllenhammar AB. Once more, we draw attention to the fact that the conversion into Shares is at 0.8p, which is a premium to the market price. We shall use the proceeds to further reduce our exposure under the back to back financing facilities we took out to enable our investment in the Steelmin ferrosilicon plant at Jajce, and for general business purposes."   

The Notes are being issued at par and are convertible into Ordinary Shares of £0.0001 in Red Rock ("Shares") at a price of 0.8 pence per Share. Each Note has a denomination of £1,000 and is thus convertible into 125,000 new Shares in the Company. Conversion may take place at any time up to the final redemption date of 19 December 2018.

Each Note holder also receives 62,500 Warrants for each Note subscribed. Each Warrant entitles the holder to subscribe for Shares at any time up to 30 April 2019 at a price of 1.4 pence per Share.

The interest rate on the Notes is 10% per annum, accruing monthly.

Up to £1,000,000 of Notes may be issued, in one or more tranches. The maximum number of new Shares that could fall to be issued upon exercise of all of the Notes issued in Tranche 3 is 36,250,000, and the maximum number of new Shares that could fall to be issued upon exercise of all of the Warrants issued in Tranche 3 (for an additional consideration to the Company of £253,750) is 18,125,000.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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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