Update on Resource Star Limited

RNS Number : 3571D

Red Rock Resources plc

15 May 2012

 



Red Rock Resources plc

Resource Star Limited - Acquisition of balance of Livingstonia Uranium Project

Date: 15 May 2012

Red Rock Resources plc ("Red Rock" or the "Company"), a mining and exploration company with a producing gold mine in Columbia; Kenyan gold and Greenland iron ore exploration projects; and interests in steel feed, uranium and rare earths, announces that its 40.32% owned associate company, Resource Star Limited (ASX:RSL)("RSL"), is to acquire the 80% of the Livingstonia Uranium Project in Malawi not already owned.

RSL has already earned a 20% equity interest from Globe Metals and Mining Limited ("Globe") under the farm in joint venture announced in March 2010. Globe will at the same time acquire the remaining 80% not owned of the Machinga Niobium-Rare Earth Project from RSL. RSL and Globe will grant each other a gross revenue royalty interest of 0.7% for Machinga and 1% for Livingstonia.  There is no cash component to the transaction.

The Livingstonia Uranium Project includes a JORC compliant Inferred Mineral Resource of 8.3 million tonnes averaging 325ppm eU₃O₈ for a contained 6 million pounds of eU₃O₈ at a cut-off grade of 150ppm.

The transaction will simplify RSL, enable it to concentrate on a uranium property with scope for resource expansion that it believes to be an attractive asset, and enhance its operational and strategic flexibility.

Further information on the Acquisition can be found here:

http://www.rns-pdf.londonstockexchange.com/rns/3571D_-2012-5-15.pdf 

Enquiries:

Andrew Bell	020 7402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	020 7402 4580 or 07757 660 798	Red Rock Resources plc	Public and Investor Relations
Philip Davies/David Porter	020 7444 0800	Religare Capital Markets	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

About Resource Star Ltd

RSL is a publicly-listed Australian company whose principal interests are uranium and associated specialty metals in Malawi, the Northern Territory, Western Australia and Tasmania.

RSL's main projects are the Livingstonia Uranium Project in Malawi, the 100% owned Edith River Uranium Project in the Northern Territory and the Spinifex joint venture with Thundelarra Resources in Western Australia.

 

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