Update - Resource Star Limited

RNS Number : 3632E

Red Rock Resources plc

08 April 2014

 



Red Rock Resources plc

Update - Resource Star Limited

8 April 2014

Red Rock Resources plc ("Red Rock" or the "Company") the mineral exploration and development company focused on iron ore and manganese, and gold, and operating in Greenland, Colombia, and East Africa is pleased to announce developments at its associate company Resource Star Limited ("RSL").

Highlights:

·      RSL announces 1 for 1 rights at 0.4 Australian cents per share to raise approximately AUD 640,000

·      Rights issue fully underwritten

·      Accompanying 1 for 4 option exerciseable at 0.4 Australian cents

RSL - Rights Issue

RSL is a company listed on the Australian Stock Exchange with stock code ASX:RSL. Its business has principally been uranium exploration in Africa and Australia. In 2013, because of poor investment prospects in the uranium market, it announced that it would seek opportunities also in other areas than uranium, including oil and gas. 

Red Rock owns 54,908,554 shares (35.19%) in RSL.

The terms of the rights offer are one new RSL share for every RSL share held at an application price of 0.4 Australian cents per share, with one free attaching unlisted option for every four new shares issued under the rights offer. The options will be exerciseable at 0.4 Australian cents per share up to 31 March 2014.

The proceeds of the offer, which closes on 12 May 2014, will be AUD 624,000.

Truestone Capital Limited has fully underwritten the rights offer. 

Further information on the rights issue, including the Rights Issue Prospectus, Appendix 3B, and Resolution to Undertake a Non-Renounceable Rights Issue, may be found at: http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=rsl 

Andrew Bell, Chairman, states:  "With this financing, the Company will, to the extent the rights is not taken up, be joined by other shareholders at RSL. These shareholders will, we believe, work with us to identify early transactions that can put new value into RSL, whether within the energy, mining, or indeed technology fields. This is only therefore a first step in value creation at RSL, a development necessary for value realisation and in the interest of Red Rock and its shareholders."

For further information contact:

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

Colin Aaronson / David Hignell 0207 383 5100       NOMAD Grant Thornton UK LLP

Nick Emerson 01483 413500                                   Broker SI Capital Ltd.

Saif Janjua 0207 382 8416                                      Joint Broker Beaufort Securities Ltd

Rupert Trefgarne 0203 128 8817                            Media Relations MHP Communications

 

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