Update

RNS Number : 4122R

Red Rock Resources plc

26 June 2015

 

Red Rock Resources Plc

("Red Rock" or the "Company")

Update

26 June 2014

Red Rock Resources plc ("Red Rock" or the "Company"), the mining and exploration company with gold interests in Ivory Coast, and Kenya is pleased to announce an update on, inter alia, its investment in Jupiter Mines Ltd ("Jupiter"), a steel feed company in which Red Rock has a 1.2% holding, as well as a royalty stake over Jupiter's Mt Ida iron-ore project.    

2015 Jupiter Mines Ltd Annual Report Highlights

·     Manganese production at 49.9% Tshipi joint venture more than doubled to 2m tons+ in second year of operation to 28 February 2015

·     One of world's largest Manganese mines

·     Share of profits of Manganese Joint Ventures increased from AUD 8.8m to AUD 18.4m

·     Net Asset Value per share decreased from AUD 21.0c to 19.6c after impairment of AUD 48.2m taken against iron ore assets

Tshipi Kalahari Manganese Projects

Jupiter holds a 49.9% joint venture interest in Tshipi é Ntle Manganese Mining (Proprietary) Ltd, the owner of two manganese projects in the Kalahari Manganese fields, Tshipi Borwa and Tshipi Bokone, and 33% of OM Tshipi (S) Pte Ltd, the marketing arm of the joint venture.      

Central Yilgarn Iron Projects

The Central Yilgarn Iron projects consist of two main assets, the smaller direct shipping ore (DSO) Mount Mason project and the long-life magnetite project, Mount Ida. Given the decline in the iron ore price, Jupiter undertook a revaluation of these exploration and evaluation assets and took an impairment of AUD 48,226,334.

More detail on the projects and Jupiter's financial performance can be found in the annual report and accessed at the following address:

http://www.jupitermines.com/images/jupiter---aipueghahz.pdf 

Red Rock holds 27,324,375 shares in Jupiter (1.2%).

Kenya

As notified in announcements on 7 May 2015 and 27 May 2015, the Company has been granted leave to institute judicial review proceedings and a stay in relation to the purported termination of the Special Licenses covering the Migori Gold Project of its partner Mid Migori Mining Ltd ("MMM").

Red Rock has now executed an agreement with Kansai Mining Corporation Ltd ("Kansai"), the other shareholder in MMM, pursuant to which Red Rock's farm-in agreement is replaced by arrangements under which any interest in the Migori Gold Project or the other assets of MMM that may be retained by or granted to MMM or Red Rock shall be shared in the ratio 75% to Red Rock and 25% to Kansai. Kansai's interest will be carried up to the point of an Indicated Mineral Resource of 2m oz gold. Red Rock is to have full management rights and the conduct of legal proceedings on behalf of both MMM and itself. Red Rock at the same time surrenders all its share interest in Kansai and pays £25,000 to Kansai, with a further £25,000 due upon recovery of the Migori Gold Project.

The value of Kansai in the books of Red Rock as at 30 June 2014 was fully impaired and stood at £0.

Andrew Bell, Chairman, states: "The key figures in the Jupiter results are the operational profit figures from the joint ventures. These are once again excellent, and despite low manganese prices have reached over AUD 18m as production and exports more than doubled.   

The current year at Tshipi is estimated to see a pause in the rate of growth, due to weak Manganese demand and possible impact of power shortages in South Africa on the rail network. Jupiter and its partners however continue to increase efficiencies and reduce production cost, and we are fortunate to be invested in a first class long term asset with excellent management.

The audited net asset value of Jupiter attributable to Red Rock's percentage holding of 1.2% is  $AUD 5.4m. 

In Kenya, we have rationalised our holding structure to enable us to operate effectively as we face the challenges ahead."

For further information, please contact:      

Andrew Bell 0207 747 9990 or 0776 647 4849                         Chairman 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 8817                                              Media Relations MHP Communications

 

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