Jupiter Mines Ltd - Update

RNS Number : 8572U

Red Rock Resources plc

01 July 2009

 

RED ROCK RESOURCES PLC

Jupiter Mines Limited: Update

Dated: 1 July 2009

Red Rock Resources plc ('Red Rock' or the 'Company') the mining exploration and mineral investment company with interests in iron ore and manganese in Australia and Zambia, and uranium investments in Africa and Australia announces that Jupiter Mines Ltd (ASX:JMS - 'Jupiter') has placed 48 million ordinary shares to a new strategic partner to raise AUD 7.81 million.

Jupiter is a junior mining exploration company listed on the Australian Stock Exchange, in which Red Rock has a shareholding of 15.2 per cent following the implementation of the first phase of the proposal from Pallinghurst Resources Australia Limited ('PRAL') and Red Rock as described in the Company's announcements of 10 November 2008 and 9 March 2009. Following the placing by Jupiter to POSCO, Red Rock's shareholding of 38,948,586 shares will represent approximately 13.51% of Jupiter's enlarged issued ordinary share capital.

The announcement by Jupiter states that POSCO Australia Pty Ltd ('POSCO') will become a strategic investor in Jupiter with the placement of 48 million ordinary shares to POSCO at 16.266 cents per share.  POSCO is an affiliate of the Pohang Iron and Steel Company, a company registered in the Republic of Korea and one of the largest steel producers in the world.  

POSCO has previously entered into a cooperation agreement with Pallinghurst, an existing shareholder of Jupiter, to jointly pursue steel feed projects. 

Following the placement, which will raise $7.81 million and is subject to Jupiter shareholder approval, POSCO will hold approximately 16.65 % of the expanded share capital of Jupiter. Upon completion of the transaction, Jupiter will have in excess of $14.5 million in cash to accelerate exploration and development activities at its Central Yilgarn Iron Ore projects and of its Manganese assets. 

POSCO has agreed an arms-length off-take agreement with Jupiter for up to 50% of the DSO-grade iron ore production. POSCO also has the right to appoint a representative to the Board of Jupiter following completion of the placement. 

Enquiries:

Andrew Bell	0207 402 4580      07766 474849	Red Rock Resources plc	Chairman
Peter Trevelyan-Clark / Ben Jeynes	020 7489 4500	Blomfield Corporate Finance Ltd	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker
Ron Marshman /  John Greenhalgh	020 7011 9411	Lothbury Financial Limited	Public Relations

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

 

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