Sale of Colombian Interests - Update

RNS Number : 7904M

Red Rock Resources plc

18 July 2014

 



Red Rock Resources Plc

("Red Rock" or the "Company")

Sale of Colombian Interests - Update

18 July 2014

Red Rock Resources plc, the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast, announces an update in relation to the proposed sale of its Colombian interests to Nicaragua Milling Company Limited ("NMC"), which was first announced on 13^th May 2014.

NMC has requested an amendment of the terms of the Letter of Intent ("LOI") to extend the initial exclusivity period by 30 days to 11^th August 2014. After this period, NMC would have the option to pay a further non-refundable fee of USD 50,000 to initiate a second exclusivity period of 30 days to 10^th September 2014 in the event both parties agree this is required.  

Red Rock is agreeable to the initial extension in principle but the parties are currently discussing a modification of the exclusivity provision to allow the Company additional flexibility during the extended period of due diligence.

The transaction is expected to close on or around 10^th September 2014, should the second exclusivity period not be required. Further announcements will be made as soon as practicable.

Company Chairman Andrew Bell comments:

"Both Red Rock and NMC remain committed to closing this transaction and we are currently discussing amendments to the LOI to accommodate the interests of both parties.  We are working closely with NMC to deal with any remaining issues they may have during this period."

For further information contact:

Andrew Bell 0207 747 9990 or 0776 647 4849                Chairman Red Rock Resources plc

Colin Aaronson / David Hignell 0207 383 5100             NOMAD Grant Thornton UK LLP

Nick Emerson 01483 413500                                            Broker SI Capital Ltd.

Saif Janjua 0207 382 8416                                                Joint Broker Beaufort Securities Ltd

Rupert Trefgarne 0203 128 8817                                      Media Relations MHP Communications

 

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