Update and significant shareholding

RNS Number : 6682P

Red Rock Resources plc

22 February 2016

 

Red Rock Resources plc

("Red Rock" or the "Company")

Update - Various matters

Significant shareholding

22 February 2016

Update

Further to the announcement of 2 February 2016, Company management visited the oil producing well LM20 at Shoats Creek in Louisiana, where Red Rock has a 20% Working Interest and a 14.4% Net Revenue Interest, following the start of production, and expects to announce the stable production rate at LM20 shortly.

Further to the announcement of 29 January 2016, the second tranche of sale proceeds from the sale of Red Rock's Colombian interests, amounting to USD 225,000, has been received from Colombia Milling Limited ("CML"). Red Rock has agreed to amend the royalty agreement to start payments from 1 May rather than now, as although the improved mine and plant are now operating the volumes of gold produced are not yet significant. The Company has also had preliminary discussions in relation to accelerating, in whole or in part, the USD 1,000,000 promissory note executed by CML, by conversion or otherwise.  

Red Rock's application for judicial review in relation to the Kenyan licenses continues in the Nairobi High Court.

Significant shareholding

Mr John Arnold has notified the Company that he now holds 7,973,800 shares, equivalent to 3.25% of the issued share capital.

Andrew Bell, Chairman, comments: "An improving gold price, a better manganese price, and the stabilisation of the oil price have created a more benign environment for the Company's activities. Progress continues in Louisiana and Colombia as expected, and at the Tshipi Borwa manganese mine of Jupiter Mines Ltd (in which we hold a 1.2% interest) production is being carried out profitably at today's costs and prices. We expect the improvement to continue."

For further information, please contact:

Andrew Bell 0207 747 9990                                                       Chairman Red Rock Resources Plc

Scott Kaintz 0207 747 9990                                                        Director 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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