Issue of equity, option execution

RNS Number : 1671V

Red Rock Resources plc

06 January 2012

 



RED ROCK RESOURCES PLC

("Red Rock" or the "Company")

Issue of Equity

Option Execution re 2012 Greenland Exploration Programme

Dated: 06 January 2012

Red Rock Resources plc ("Red Rock" or the "Company") announces that North Atlantic Mining Associates Ltd ("NAMA"), with which the Company entered into the Option and Earn-In Agreement announced on 3 March 2011 in relation to the Melville Bugt Project in north west Greenland (the "March 2011 Agreement"), has subscribed for 5,364,632 new ordinary shares of 0.1 pence each ("Shares") in the Company at a price of 2.993 pence per Share (the "Subscription"). The proceeds of the subscription are £160,403 before expenses, conditional on the Shares being admitted to trading on AIM.

The Company has simultaneously executed the option to fund the 2012 exploration program of NAMA's subsidiary, NAMA Greenland Limited ("NGL"), as outlined in the March 2011 Agreement, which will on completion result in the issue to the Company of shares representing 35 per cent. in NGL. NGL is the owner of the exploration concessions including the MB1 and MB5 licenses in the Melville Bugt region of Greenland.  In consideration for funding the 2011 exploration programme, Red Rock has been issued with shares representing a 25 per cent. interest in NGL.

Red Rock and NAMA have today entered into certain new agreements regarding the conduct of joint venture business activities ("JV") relating to the Melville Bugt Project, including a joint venture agreement ("JVA") that supplements the provisions of the March 2011 Agreement as amended.  The objectives of the JV include to (a) undertake the exploration, delineation and definition of resources to NI 43-101 or JORC standard for the purposes of undertaking development studies, (b) commission a scoping study, pre-feasibility study, bankability study, or other relevant assessment as appropriate, (c) other activities as agreed.

Under the JVA a Management Committee will be formed with delegated authority from NAMA and Red Rock to manage the JV. Each of NAMA and Red Rock will appoint two members to the Management Committee.  The Project Manager will be appointed by the Management Committee, and will be a person nominated by Red Rock and approved by NAMA.  Red Rock welcomes this key development in advancing co-operation with its partner NAMA. These agreements evidence the confidence of the partners in the prospectivity of the Melville Bugt project and exploration program.

Following the Subscription, the Company's total issued ordinary share capital will be 760,728,091 ordinary shares of 0.1p. Application has been made to the London Stock Exchange for the 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 8.00 a.m. on 12 January 2012.

Enquiries:

Andrew Bell	020 7402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	020 7402 4580 or 07757 660 798	Red Rock Resources plc	Public and Investor Relations
Peter Trevelyan-Clark/  Ben Jeynes	020 7444 0800	Religare Capital Markets	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

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

 

END

 

 

MSCUNUNRUOAARAR