Trading Update

RNS Number : 7364Q

Red Rock Resources plc

17 April 2009

 



RED ROCK RESOURCES PLC

Trading Update

Dated: 17 April 2009

Red Rock Resources plc ('Red Rock' or the 'Company') the mining exploration and mineral investment company with interests in iron ore and manganese in Australia and Zambia, and uranium investments in Africa and Australia, has contracted to purchase a mobile gold treatment plant, with an option to purchase a second unit.

The contract with Resource Gold Proprietary Limited ('RGL') is for the purchase of a mobile gold treatment plant on a turnkey basis, for delivery in eight weeks. The plant will be a gravity plant and smelter. The plant will be fabricated, at cost, by RGL in its factory in Perth, Western Australia, at an agreed ex-factory price of AUD 200,000, will be delivered with a commitment by RGL to deliver the plant with an initial operating profit-sharing contract with a customer, and will be assembled and commissioned at cost plus agreed supervision, with RGL providing assistance with customer contracting, staffing and training and if required secondment of an experienced manager for the initial months of plant operation.

Red Rock has paid AUD 100,000 as an initial payment with the order, with the balancing payment of AUD 100,000 payable on 50% completion of the plant.

Red Rock, following the recent disposal of certain iron ore and manganese interests in Western Australia to Jupiter Mines Ltd ('Jupiter') for additional shares in Jupiter, intends to continue exploration of its remaining assets in Australia and elsewhere, including its gold interests in Western Australia. It sees the opportunity presented by this investment in gold treatment plant as complementary to these efforts, as enabling the Company to generate significant short term cash flows with low risk, and as steps in the development of an operating and mining function within the Company. 

A second plant may be ordered on the same terms within two months of fulfillment of the initial order.

Red Rock has invested AUD 67,000 in RGL and holds approximately 11 per cent. of the issued ordinary share capital of RGL. 

Mr Kenneth Watson, a director of the Company, has disclosed an interest as a member and director, and Mr Andrew Bell, a director of the Company, has disclosed an indirect interest, in a private company which holds approximately 9% of RGL. In addition, Mr Kenneth Watson, a director of the Company, has disclosed an interest as a member and director in companies which own, in aggregate, approximately 18 per cent. of RGL. 

Furthermore, Mr Kenneth Watson, a director of the Company, is a director of RGL.

Enquiries:

Andrew Bell	0207 402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Alan MacKenzie/ Ben Jeynes	020 7489 4500	Blomfield Corporate Finance Ltd	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.

 

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