Option and Earn-In Agreement
RED ROCK RESOURCES PLC
Option and Earn-In Agreement
Dated: 3 March 2011
Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Kenya and Colombia, and interests in steel feed, uranium, and rare earths has entered into an option to earn in to and explore iron ore deposits in North-West Greenland.
Red Rock signed an agreement on 2 March 2011 whereby it will pay a fee of USD 60,000 to North Atlantic Mining Associates Limited ("NAMA") for a two month option ("Option") to enter into an earn-in agreement ("Earn-In") with NAMA over exploration concessions held by its subsidiary NAMA Greenland Ltd ("NGL") at Thule, Greenland. During this two month period Red Rock will carry out further due diligence, including a site visit, while NAMA will carry out preparatory work for the exploration programme.
Red Rock may exercise the Option by making payment of USD250,000 (or issuing an equivalent value of Red Rock ordinary shares), upon which it will enter into the Earn-In and be obligated to fund the 2011 exploration programme. The 2011 exploration programme is expected to include airborne geophysics, drilling, and the definition of a JORC or equivalent Resource. Upon fulfilment of the programme, Red Rock will be entitled to a 25% interest in NGL.
Under the Earn-In, Red Rock may elect to earn a further 35% interest in NGL by making a further payment of USD250,000 (or issuing an equivalent value of Red Rock ordinary shares) and funding the 2012 exploration programme, also to include definition of a JORC or equivalent Resource.
The agreed aggregate cost of the 2011 and 2012 exploration programmes is USD 5,000,000, exclusive of taxes.
The concessions held by NAMA Greenland Ltd are MB1 and MB5, together amounting to 644 sq km of ground, which have been mapped by the Geological Survey of Denmark and Greenland as Archaean greenstone with banded iron formations, magnetite, and haematite. They are unexplored. The licenses are also considered by the Company to have possible gold potential.
http://www.rns-pdf.londonstockexchange.com/rns/2646C_1-2011-3-3.pdf
The area lies to the North-East of Baffin Island, which contains the Mary River iron ore deposit of Baffinland Iron Mines Corporation (TSX:BIM), currently in development planning and situated in rocks of similar age and type.
Enquiries:
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Red Rock Resources plc |
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Andrew Bell, Chairman |
020 7402 4580/07766 474849 |
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Sandra Spencer, Public and Investor Relations |
020 7402 4580 |
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Nominated Adviser |
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Religare Capital Markets Ltd |
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Peter Trevelyan-Clark/Ben Jeynes |
020 7444 0800 |
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Broker |
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Simple Investments Ltd |
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Nick Emerson |
01483 413500 |
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Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.
This information is provided by RNS