Proposed Partial Sale of Royalty Interest

RNS Number : 8245W

Red Rock Resources plc

06 February 2012

 



RED ROCK RESOURCES PLC

Proposed Partial Sale of Royalty Interest

Dated: 06 February 2012

Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Greenland and Colombia, exploration in Kenya, and interests in steel feed, uranium, and rare earths, announces that it has agreed to sell, subject to due diligence and documentation by the buyer, a 50% interest in the Company's 1.5% gross production royalty over any production from the Mt Ida iron ore project.

Anglo Pacific Group plc, a company listed on the London Stock Exchange Ltd, has released the following announcement: 

"Anglo Pacific Group plc

Proposed Transaction for the acquisition of 50% of the Mount Ida Magnetite Royalty from Red Rock Resources plc

Anglo Pacific Group plc ("Anglo Pacific") (LSE:APF) (TSX:APY) announces that it has agreed to a proposal with Red Rock Resources plc to acquire 50% of the Mount Ida 1.5% Gross Revenue Iron Ore Royalty (GRR) currently held by Red Rock Resources plc.

The acquisition will total US$14 million paid in three instalments as follows:

•           Tranche 1: US$6 million on completion and agreement of the terms of the transaction, for a 0.3% GRR.

•           Tranche 2: US$4 million payment for a further 0.225% GRR following the results of a positive definitive feasibility study (DFS), a formal decision to mine and that 20% of the pre-production capital costs outlined in the DFS are provided for.

•           Tranche 3: US$4 million for a further 0.225% GRR following the commencement of commercial production, taking the total to 0.75% GRR.

The payments are to be made in a combination of cash and Anglo Pacific shares to be determined, subject to settlement and execution of formal documentation, and approval of the London and Toronto Stock Exchanges.

The Mount Ida magnetite project is located in Western Australia and is being developed by Jupiter Mines Limited (ASX:JMS).  The project has a maiden JORC compliant inferred resource of 530 million tonnes at 31.94% Fe, as announced by Jupiter Mines Limited on 19th January 2011.  A scoping study was completed in March 2011 outlining an operation that would produce 10 million tonnes per annum of magnetite concentrate grading +68% Fe, transported along the existing railway from Menzies to Port Esperance on Western Australia's south coast.  A feasibility study is underway for completion by the end of this year."

Colombia 

Gold production figures will in 2012 be provided on a quarterly basis.

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

Philip Davies/David Porter

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

 

 

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