Loan Repayment and Update

RNS Number : 2887J

Red Rock Resources plc

16 December 2015

 

Red Rock Resources plc

("Red Rock" or the "Company")

Loan Repayment and Update

16 December 2015

Red Rock Resources plc, the mining and exploration company with interests in gold and oil exploration announces, further to its announcements of 4 September 2015 and 9 October 2015 that it has repaid and cancelled USD 150,000 of its convertible loan with YA Global Master SPV, Ltd ("YA").

Of the original facility amount of up to £250,000, YA converted £75,000 in October. With this USD 150,000 repayment the total amount outstanding on the one year facility is reduced to approximately £80,000.

Further to the announcement of 4 September 2015 and the Final Results announcement of 12 November 2015, the Company reports a statement by its investee company Jupiter Mines Ltd ("JMS"), on the appointment of a new CEO at the Tshipi manganese mine. As the announcement notes, no medium grade producer can produce manganese profitably at today's price. In order to implement a business model that will further reduce costs and create a sustainable operation even in current conditions, Tshipi plans to reduce 2016 shipments by 30% and has begun redundancy discussions affecting 60% of its employees. Further details are on the Jupiter Mines Ltd website at http://www.jupitermines.com/investor_relations/announcements.phtml

The Company holds 27,324,375 shares in the non-listed JMS (1.2% of issued capital). The net assets per share at the February 2015 year end were AUD 19.6c, for a total attributable value to Red Rock, on this measure, of approximately AUD5,400,000. The holding in JMS is held in the 30 June 2015 audited accounts at a value of £1,304,647.  

Andrew Bell, Chairman, states: "We thought it preferable in this market, from the point of view of shareholders, to repay the YA convertible rather than to allow conversion. This we are sure will be a popular decision. At Jupiter, we were impressed by how the business was able to maintain profitability right up to the Summer, and as it has done throughout the management has grasped the nettle and taken early and decisive action to bring that profitability back. The Tshipi manganese operation has been ahead of the curve rather than behind it at each stage of its response, and we believe will come out of this downturn with its position as one of the lowest cost, longest life, best managed companies in its sector maintained and even strengthened."

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 0129 351 7744                                                Broker Dowgate Capital Stockbrokers Ltd

Christian Pickel 0203 128 8208                                                 Media Relations MHP Communications

 

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