Update

RNS Number : 9933K

Red Rock Resources plc

05 August 2013

 

Red Rock Resources plc

("Red Rock" or the "Company")

Update

5 August 2013

Red Rock Resources Plc, the mining and exploration company with an iron ore project in Greenland, a producing gold mine in Colombia, and advanced gold and copper exploration in Kenya, announces an update on operations and developments.

Greenland

Further to the Company's announcement on 23 July 2013, in relation to an offer by a third party for a controlling interest in Nama Greenland Limited, a company 60% owned by Red Rock (the "Offer"), the Company has been advised by the lawyers acting for the offerors, that terms have been approved and initialled, and formal signature and closing are expected later this month, which will allow a fully funded Offer to proceed.

The parties thus continue to make progress, but Red Rock emphasises that in the absence of definitive signed agreements completion of the transaction cannot be assumed.

Colombia       

Further to the announcement of 23 July 2013, the illegal stoppage affecting transport and industry in our area has not entirely ended.

FPM had taken measures to enable it to continue operations and the impact of the stoppage on El Limon gold production so far has been minimal.

Should this change, a further announcement will be made.

Kenya

The new Secretary for Mining announced today a number of measures, including the revocation of new licenses issued between the dissolution of Parliament and before the elections held under the new Constitution, and the setting up of a task force to look into possible irregularities. The Kenyan Government's concerns include that there may have been no clear legal basis for such issues during this period.

Red Rock is aware of possible letters purporting to grant unspecified rights over the Macalder tailings, in which the Company has an interest through its direct and indirect holdings in Mid Midori Mining Company Limited, during this period. Red Rock in August last year submitted an application for a mining license over the small part of the Kenyan licenses covering the tailings, which was stamped as received and is being given due course at the Ministry. The Company understands that any letters in favour of other parties did not constitute licenses, were irregularly issued and have no legal standing under the Mining Act, and Red Rock welcomes these actions by the Ministry.

Other Investments

The new management brought in by the Company at Resource Star Limited (ASX:RSL), where Red Rock holds 38.6% of the issued shares, has worked with the RSL board to identify and deliver a term sheet for a transaction that will take RSL into oil development, as announced on 2 August 2013. The transaction, which is subject to ASX and shareholder approval, is also subject to due diligence and  the Company is pleased to announce that Scott Kaintz has been appointed to head the Red Rock team that will co-ordinate the due diligence process on behalf of RSL.

Red Rock continues its efforts to mediate between the parties to find an optimal solution at Ascot Mining plc, in which the Company has a convertible loan stock interest.  Ascot Mining plc, is a company listed on the ISDX but currently suspended following a loan default.

Enquiries:

Andrew Bell	020 747 9970 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	020 747 9970 or 07757 660 798	Red Rock Resources plc	Press Relations
Colin Aaronson/David Hignell/Ed Thomas	020 7383 5100	Grant Thornton UK LLP	Nominated Adviser
Nick Emerson	01483 413500	SI Capital Ltd	Broker

 

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