Completion of Partial Sale of Royalty Interest

RNS Number : 5511C

Red Rock Resources plc

02 May 2012

 

RED ROCK RESOURCES PLC

Completion of Partial Sale of Royalty Interest

Dated: 2 May 2012

Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Greenland, Colombia and Kenya, and interests in steel feed, uranium, and rare earths, reports further, following the earlier announcements made on 6 February 2012 and 10 April 2012, on the sale to Anglo Pacific Group plc ("Anglo Pacific")(LSE:APF)(TSX:APY) of a 50% interest in the Company's 1.5% gross production royalty over any production from the Mt Ida iron ore project.

Following successful due diligence inquiries, the Foreign Investment Review Board of Australia granted approval for the transaction to proceed, and Jupiter Mines Ltd executed a deed of assignment of the sold interest as required.  Subsequently, on 1 May 2012 Red Rock and Anglo Pacific successfully completed the royalty sale transaction.    

The Tranche 1 payment of U.S.$6,000,000 for 0.3% of the GRR has been settled by the payment of U.S.$3,899,999.81 less some applicable costs and the issue and allotment to Red Rock of 416,161 new Anglo Pacific shares.  These shares were valued at approximately $2,139,730 at the close of trading on 1 May 2012 and will rank pari passu in every respect with the existing ordinary shares of Anglo Pacific.  The Board understands that Anglo Pacific will make applications to the UK Listing Authority, the London Stock Exchange and the Toronto Stock Exchange for the new shares to be admitted to the official list.   

The remaining tranches of the acquisition total US$8 million and will be paid as follows:

·     Tranche 2: US$4 million payment for a further 0.225% GRR following the results of a positive
 definitive feasibility study (DFS), a formal decision to mine and that 20% of the pre-
 production capital costs outlined in the DFS are provided for.

·     Tranche 3: US$4 million for a further 0.225% GRR following the commencement of 
 commercial production, taking the total to 0.75% GRR.

Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.

Enquiries:

Andrew Bell	020 7402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	020 7402 4580 or 07757 660 798	Red Rock Resources plc	Public and Investor Relations
Philip Davies/David Porter	020 7444 0800	Religare Capital Markets	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

 

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