Accelerated Exploration Financing and Joint Broker

RNS Number : 3711X

Rockfire Resources PLC

09 August 2018

 

Rockfire Resources plc

("Rockfire", "ROCK" or the "Company")

Accelerated Exploration Financing and Joint Broker

Rockfire Resources plc (LSE: ROCK) is pleased to announce details of its accelerated exploration campaign for the remainder of  2018.  In conjunction with the programme to rapidly advance work on specific targets, the Company is pleased to announce it has raised £405,000 (the "Placing") before costs, through the issue of 30,000,000 new ordinary shares (the "Placing Shares") at a price of 1.35p each (the "Placing Price"), with one warrant for every three shares subscribed for, exercisable at 2.30p each, expiring on 16 October 2019.

Highlights:

·     ROCK has conducted the Placing at zero discount to market price (on the day Placing was conducted) to aggressively pursue plans for drilling multiple targets at its Marengo Project ("Marengo"), as well as targets at Rockfire's Double Event Prospecting Licence.

·     The Company has raised gross proceeds of £405,000 through the placing of 30,000,000 new ordinary shares  at a price of 1.35 pence per share, with 10,000,000 warrants on a one warrant for three shares subscribed basis, exercisable at 2.30p up to and including 16^th October 2019 (the "Placing Warrants");

·     All of the raising proceeds (less costs) are being allocated to accelerate drilling campaigns at the One Mile Mountain target at Marengo and the Double Event Prospect which forms part of the Lighthouse tenement. Proceeds will also be directly allocated towards an initial geophysical IP survey at the Copperhead Project.

·     Rockfire has appointed 30-year old London stockbroking firm, First Equity Limited, as Joint Broker following the Placing being conducted amongst First Equity high net worth clients.

David Price, Chief Executive Officer of Rockfire commented: "This is an important chapter in the Company's rapid development of its gold and copper assets in Queensland, Australia.  And it is extremely pleasing to see such a strong level of investor support for the Company's efforts to date through the oversubscribed issue of Placing Shares at no discount to the market price.

"The drilling planned at Marengo is particularly exciting as geophysics demonstrates likely alteration surrounding a potential intrusion. Should this intrusion or the surrounding alteration contain gold and/or copper, the system would represent a new discovery.

"We look forward to making further announcements to the market as the anticipated drilling is carried out."

Accelerated Exploration Campaign

Rockfire Resources has raised additional funds to accelerate it's exploration of all three projects in Queensland. In particular, geophysics at Marengo has outlined an exciting pattern which may indicate a porphyry copper lies at approximately 80m below One Mile Mountain. Resistivity and magnetic profiles have also contributed to the model for potential mineralisation and initially 3 holes are being planned to test for mineralisation and to gain an understanding of the geology deep beneath the mountain.

At Double Event, historical workings, high-grade rock samples and high-resolution ground magnetics have outlined a second target at the western extremity of a 3km-long mineralised trend. Drilling is planned to test this section of the trend and add to the mineralisation encountered in June 2018 at the eastern end of the 3km-long mineralised belt.

Copperhead is a large-scale porphyry copper deposit with historical drilling which encountered visible copper minerals over depths to 300m below surface. Geophysics (gradient array IP) is planned to see if any chargeable or resistive responses are evident in the vicinity of the drilling.

Placing

The Company has raised gross proceeds of £405,000 through the placing of 30,000,000 Placing Shares at a price of 1.35 pence per share raising proceeds from private clients of newly appointed joint-broker, First Equity Limited.

The Placing incorporates the issue of warrants to subscribe for 10,000,000 new Ordinary Shares at an exercise price of 2.30 pence per warrant on the basis of 1 Placing Warrant per 3 Placing Shares, with an exercise period of up to and including 16 October 2019.

The Placing Shares and Placing Warrants will be issued under the existing authorities approved by shareholders of the Company at the last Annual General Meeting of the Company.  .  Application will be made for these New Ordinary Shares to be admitted to trading on AIM, which is expected to take place on or around 24 August 2018.  The New Ordinary Shares will rank pari-passu with existing ordinary shares.

Appointment of Broker

The Company has appointed a new joint-corporate broker - First Equity Limited, a London-based firm operating for over 30 years with client assets administered by well-established third-party custodians. The appointment is effective as of 24 August 2018.

Total Voting Rights

In accordance with the provision of the Disclosure Guidance and Transparency Rules of the FCA ("DTRs"), the issued ordinary share capital of Rockfire following the Placing Shares being admitted to trading shall be 373,342,293 Ordinary Shares with voting rights attached (one vote per share).  There are no shares held in treasury.  This total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in, Rockfire under the DTRs.

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Enquiries:

Rockfire Resources PLC David Price, Chief Executive Officer	Eml: [e-mail]
Cenkos Securities plc (Nominated Adviser & Joint Broker) Derrick Lee / Beth McKiernan	Tel: [phone]
First Equity Limited (Joint Broker)	Tel: [phone]
Jason Robertson

 

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