Jupiter Mines Buy-Back

RNS Number : 3835Q

Red Rock Resources plc

11 September 2017

 

Red Rock Resources plc

("Red Rock " or the "Company")

Jupiter Mines Buy-Back

11 September 2017

Further to the announcement of 31 July 2017, Red Rock announces that Jupiter Mines Ltd ("Jupiter"), an Australian unlisted public company, has announced the details of its planned US$25m distribution to shareholders.

The full Jupiter announcement may be read on its website www.jupitermines.com.

Highlights:

o  Distribution will be by means of an equal access share buyback to return US$25m (approximately AU$31.3m) to shareholders ("Buy-Back")

o 

o  Jupiter shareholders will be made an offer to buy back 4% of their Jupiter shares ("Shares") at a set price of US$0.29 (approximately AU$0.36) per share

o  Jupiter's balance sheet will remain strong following the Buy-Back

o  Should current manganese prices hold, Jupiter may receive a further ZAR250m distribution from Tshipi at the February 2018 year end

o  Tshipi has a 100 year mine life, is one of the largest manganese producers, and has one of the lowest operating costs

o  All Jupiter Directors will accept the Buy-Back, as will Red Rock

o  Red Rock holds approximately 1.2% of Jupiter, expects to continue to hold this percentage post the Buy-Back, and will receive in late October- early November an estimated US$300,000 from its share of the Buy-Back

Red Rock Chairman Andrew Bell states: "Having received a US$655,784.80 distribution in March, this brings our distributions from Jupiter profits in calendar 2017 to nearly a million dollars.

We now expect our gold royalty receipts to start becoming significant starting with the November payment, and with the Steelmin ferrosilicon plant expected to come on stream around year-end in a strong price environment for ferrosilicon, can reasonably anticipate Steelmin to start contributing to our profits in calendar 2018. 

The repositioning of Red Rock as a cashflow-generative miner, developer and processor continues to advance.

We expect to report further in due course on progress in the capital value realisation strategies being developed by the shareholders at Tshipi."  

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 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

Neil Badger 0129 351 7744                                                               Broker Dowgate Capital Stockbrokers Ltd

 

END

 

 

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