Update: Australia

RNS Number : 1060X

Red Rock Resources plc

29 April 2021

 

 

Red Rock Resources PLC

("Red Rock" or the "Company")

Update: Australia

29 April 2021

Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and base metals, announces an update in respect of its interest in Jupiter Mines Ltd (ASX:JMS)("Jupiter") and its spin-off plans, and in respect of Red Rock Australasia Pty Ltd ("RRAL") a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Gold Fields of Victoria. Red Rock owns 50.1% of RRAL, with 49.9% being owned by Power Metal Resources plc (AIM:POW).  

Key points

· The Jupiter final dividend for the year ending 28 February 2021 of AUD 0.02 per share will be payable on 27^th May 2021, when Red Rock will receive approximately £150,000;

· Jupiter dividend yield (based on Jupiter share price on dates of dividend declarations) is 10.1% for the year to 28 February 2021, after 15.7% and 22.7% in the two previous years, reflecting the impact of lockdowns in the first part of the period;

· A General Meeting of Jupiter has approved the reduction of capital required for the demerger and IPO of Juno Minerals Ltd ("Juno"), its iron ore spin-out, on the Australian Stock Exchange;

· Following grant to RRAL of its first five gold exploration licenses in Victoria, announced on 2^nd February 2021 and 17^th March 2021, a further two licenses have now been granted:

o  EL007329 (Evergreen) covering 484 sq km

o  EL007301 (Mt Bute), covering 85 sq km;

· The seven granted licenses in Victoria now cover an exploration area of 848 sq km, including numerous old mines and workings and identified geological targets;

· With the bulk of the ground covered by the NI 43-101 report now at granted status, the IPO process for RRAL will accelerate

Map

http://www.rns-pdf.londonstockexchange.com/rns/1060X_1-2021-4-29.pdf

Red Rock Chairman Andrew Bell commented :

"Jupiter's high payout ratio means that even in a year impacted by the COVID-19 virus a good final dividend was able to be paid, giving for the third year in succession a double digit yield. This long life, low cost, manganese producer is now distributing out to shareholders its iron ore assets in an ASX float, which for us as royalty holders over the main iron ore asset is a doubly encouraging development.

Meanwhile IPO plans for the assets held in our Victoria gold joint venture, Red Rock Australasia Pty Ltd, can finally move up a gear with the grant of two more tenements with a combined area of 569 sq km, one of which is the geologically interesting Evergreen tenement, which lies in an area attracting increasing exploration spend by companies we see as our market comparators.

The tenement package with which we would now propose to go to the market represents we believe a strong and competitive investment offering."

  FURTHER INFORMATION

Joint Venture Company - RRAL

RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc ("POW"). Paul Johnson, CEO of POW and Andrew Bell are directors of RRAL.

Granted Licenses

RRAL was in February 2021 granted its first three licenses, covering areas close to the regional centre of Ballarat, namely EL007271 ("Blue Whale"), EL007281 ("Blue Chip"), and EL007285 ("Blue Ribbon").

These licenses cover high priority areas where RRAL has early drill targets and in which exploration has already started.

A further two licenses were granted in March 2021, and a further two in April 2021.

License Application Number	Project Name	Area (km2)
EL007271	Blue Whale	133
EL007281	Blue Chip	74
EL007285	Blue Ribbon	8
EL007327	Blue Stocking	60
EL007385	Sardinia	4
EL007329	Evergreen	484
EL007301	Mt Bute	85
Total		848

Applications

RRAL has applications in process for eleven other new gold exploration license areas covering approximately 2,057 km² in the Victoria Goldfields of Australia as follows:

License Application Number	Project Name	Area (km2)
EL007282	Blue Sky	489
EL007294	Red Queen	130
EL007328	Blue Yonder	168
EL007330	Blue Angel	202
EL007460	Kilmore West	349
State land within EL007271 [EL007505 EL007506 EL007507]		[9 9 8]
EL007540* (3 competing applications)	Outer Ballarat	148
Total		c 1,486

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

The following applications have been made in Western Australia, covering largely areas previously held by the Company at the time of its original listing. The two where there is another applicant will be subject to a ballot.

EL45/5859 (One competing application)	Paterson	227
EL45/5885	Pilbara/Paterson	70
EL45/5881 (One competing application)	Pilbara/Paterson	33

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information, please contact:

Andrew Bell 0207 747 9990  Chairman Red Rock Resources Plc

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

Mark Treharne 0203 700 2500   Broker Pello Capital Limited

 

END

 

 

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