RSL joint venture; reduction JMS shareholding

RNS Number : 2279E

Red Rock Resources plc

04 April 2011

 



RED ROCK RESOURCES PLC

Resource Star Limited Joint Venture

Reduction in Jupiter Mines shareholding

4 April 2011

Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Kenya, Costa Rica and Colombia, and interests in steel feed and uranium, announces that its 24.9 per cent. associate Resource Star Limited (ASX: RSL) has today announced an exploration joint venture with Thundelarra Exploration Limited (ASX: THX) on Thundelarra's Spinifex Uranium project in Western Australia.  The project, located some 50km south of Kununurra and approximately 60 north of the Argyll diamond mine in WA, was discovered in the early 1970s.  Highly anomalous Uranium rock chip samples have been located in the cover sequence above an unconformity adjacent to the Revolver Creek Fault Zone. The project has two defined prospects and a zone of fault-associated unconformity targeted for early drill testing near the surface anomalism.

RSL will earn 20 per cent. equity in the project through the completion of 1,000m of drilling during the first 12 months of the joint venture and a further 31 per cent. by completing expenditure of AUD 500,000. The full text of the RSL announcement may be accessed via:

http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=rsl.

Separately, Red Rock sold 5,000,000 shares in Jupiter Mines Limited (ASX: "JMS") on 30 March 2011 for a gross consideration of AUD 2,750,000.  The disposal was made following an approach from an institutional investor and proceeds will be applied, inter alia, to meeting Red Rock's tax obligations arising from the vending in of Red Rock assets to JMS in 2009 and 2010 in consideration of the issue of JMS shares.

Following the disposal, Red Rock retains 74,200,832 JMS shares, being approximately 80 per cent. of its original holding in JMS, and some 4.24 per cent. of JMS's current issued share capital (ordinary and deferred). The Company remains committed to the growth strategy of JMS, does not intend to make further disposals of JMS shares during the current year and views its JMS shares as a key asset.

Enquiries:

Red Rock Resources plc
Andrew Bell, Chairman	020 7402 4580/07766 474849
Sandra Spencer, Public and Investor Relations	020 7402 4580
Nominated Adviser
Religare Capital Markets Ltd
Peter Trevelyan-Clark/Ben Jeynes	020 7444 0800
Broker
Simple Investments Ltd
Nick Emerson	01483 413500

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

 

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