Update

RNS Number : 2315H

Red Rock Resources plc

16 August 2016

 

Red Rock Resources plc

("Red Rock" or the "Company")

Update

16 August 2016

Further to announcements made on 28 July 2016, 14 July 2016 and 1 July 2016, Red Rock announces an update in relation to payments from the Company's Shoats Creek Field in Beauregard Parish, Louisiana and in relation to the sale of the Company's interest in the El Limon gold mine, Colombia.

Highlights:

·     US$ 8,911.94 net paid to Red Rock from first revenue distribution from Shoats Creek

·     Payment of US$225,000 from Colombia Milling Ltd ("CML") expected later in month

·     First royalty payment from CML expected in September in respect of period 1 May to 31 July  2016

·     In relation to the US$1,000,000 Promissory Note from CML held by Red Rock, where Red Rock has served notice of its intention to convert but it had appeared CML might not accept this, the parties are in discussion on a resolution

Red Rock Chairman Andrew Bell comments: "We started to invest in the development of the Shoats Creek field late last year, and despite flooding in Louisiana at times this year oil production has been brought on stream and gradually been optimized. This first payment relates to the initial period of production. We are delighted that we are now beginning to receive a revenue flow from oil production, that we expect will become a reliable and growing source of income.    

At El Limon, the mine and plant have been brought back on stream after refurbishment and here too we expect a running in period before smooth operation is achieved. However we are due an initial royalty payment in September, and this will be another milestone for us.

In addition, CML has indicated that it expects to pay the payment instalment due shortly of US$225,000 towards the end of this month. We consider that under the terms of the agreements with CML, conversion to listed shares of the US$ 1,000,000 CML Note due 2018 was triggered earlier this year, and we served notice of this. CML has not acknowledged Red Rock's right to convert but has indicated a willingness to consider an early repayment of the Note, and the parties plan to meet later this month to seek a mutually agreeable resolution."     

The information contained within this announcement is deemed to constitute inside information under the Market Abuse Regulations (EU) No 596/2014

For further information, please contact:

Andrew Bell 0207 747 9990                                                          Chairman Red Rock Resources Plc

Scott Kaintz 0207 747 9990                                                           Director 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

 

END

 

 

MSCLLFIDTVIELIR