Sale of Colombian Interests - Update

RNS Number : 3642N

Red Rock Resources plc

25 July 2014

 

Red Rock Resources Plc

("Red Rock" or the "Company")

Sale of Colombian Interests - Update

25 July 2014

Red Rock Resources plc, the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast, announces an update in relation to the proposed sale of its Colombian interests to Nicaragua Milling Company Limited ("NMC").

Further to the Company's announcement on 18^th July 2014, Red Rock has now agreed to amend the terms of the Letter of Intent ("LOI") to extend the initial exclusivity period by 30 days to 11^th August 2014. After this period, NMC would have the option to pay a further non-refundable fee of USD 50,000 to initiate a second exclusivity period of 30 days to 10^th September 2014 in the event both parties agree this is required.  

The LOI between Red Rock and NMC remains binding, however, Red Rock has clarified that it is able to have limited interactions with alternate buyers who have approached it.    

The transaction is expected to close on or around 10^th October 2014, should the second exclusivity period be required. Further announcements will be made as the transaction progresses.

Company Chairman Andrew Bell comments:

"We have recently been in daily contact with NMC to progress this transaction.  NMC intend to send a metallurgist to the visit the plant in the next two weeks, and following that report we should have a good idea of the remaining timeline for completion.  Both parties remain committed to achieving this end."

For further information contact:

Andrew Bell0207 747 9990 or 0776 647 4849                 Chairman Red Rock Resources plc

Colin Aaronson / David Hignell 0207 383 5100             NOMAD Grant Thornton UK LLP

Nick Emerson01483 413500                                            Broker SI Capital Ltd

Saif Janjua0207 382 8416                                                         Joint Broker Beaufort Securities Ltd

Rupert Trefgarne0203 128 8817                                      Media Relations MHP Communications

 

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