Update and Placing

RNS Number : 3175G

Red Rock Resources plc

02 March 2015

 



Red Rock Resources Plc

("Red Rock" or the "Company")

Update and Placing

2 March 2015

Red Rock Resources Plc, the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast, announces an update and placing.

Colombia

The Company expected to execute the sale of Red Rock's interests in the El Limon mine before the end of February 2015, although no firm date had been set. The Company believes that the intention of all parties is to execute in the shortest possible timeframe, that there are no reasons for further delay, and that it will be in a position to release a further update this week.

Ivory Coast

Results from 648 composite samples at Dabakala and 238 samples from Alepe are now available from the laboratory and an initial analysis is expected to be released by the end of next week.

Placing

Red Rock announces that it has completed a placing with clients of Dowgate Capital Stockbrokers Limited ("Dowgate") and others of  87,500,00 ordinary shares of 0.01p each ("Shares") in the Company at a price of 0.08p per Share (the "Placing"). The gross proceeds of the Subscription are £70,000.

81,250,000 Shares have been placed by Dowgate with certain private and fund clients.

The proceeds of the Placing will be applied towards vendor repayments and working capital.

Following the Placing, the Company's total issued ordinary share capital will be 2,458,616,172 ordinary shares of 0.01p. Application has been made to the London Stock Exchange for the Shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. Dealings are expected to commence at 8 a.m. on 9 March 2015.

Chairman Andrew Bell comments:

"We expect imminent completion of the Colombian sale but given that there will inevitably be some time gap between deal execution and receipt of funds, keeping a prudent level of liquidity in the business while minimizing dilution at these prices by a small fundraising was the prudent course of action. We have investors who recognize the upside potential of a business with a strong portfolio of projects and investments including Jupiter Mines, Ivory Coast, Kenya and several others and a low market value, but the market generally expects us to deliver on announced transactions and exploration, which we intend to do."     

For further information, please contact:

Andrew Bell 0207 747 9990 or 0776 647 4849                               Chairman Red Rock Resources Plc

Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396           NOMAD Beaumont Cornish Limited

Jason Robertson 0129 351 7744                                                  Broker Dowgate Capital Stockbrokers Ltd

Christian Pickel 0203 128 8208                                                   Media Relations MHP Communications

 

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