Update on Proposed Sale of Interest in Greenland

RNS Number : 5410X

Red Rock Resources plc

08 February 2013

 

Red Rock Resources plc

Update on Proposed Sale of Interest in Greenland

8 February 2013

Red Rock Resources Plc ("Red Rock" or the "Company"), the mining and exploration company with an iron ore project in Greenland, a producing gold mine in Colombia, and advanced gold and copper exploration in Kenya, announces progress in relation to its joint venture with North Atlantic Mining Associates Limited ("NAMA") and the sale of an interest in the Greenland project held through NAMA Greenland Ltd ("NGL").

NAMA Greenland Limited

60% Farm In Satisfied

As announced by Red Rock on 8 January 2012, NGL was expected to issue 35% of its shares so as to bring Red Rock's shareholding to 60%. NGL has now advised the Company that it will issue and allot to Red Rock sufficient shares in NGL to raise the percentage holding of Red Rock in the issued share capital of NGL from 25% to 60%. 

Offer for 51% interest in NGL

Further to the Company's announcement on 28 November 2012 of an offer by a third party for a 51% interest in NGL (the "Offer"), Red Rock has been advised that technical due diligence has been completed satisfactorily and that transaction documentation is in the process of being finalised.

The closing of this transaction is now scheduled to take place upon conclusion of this process which will not be on 10 February 2013, the date previously announced.

The Company has been advised that all NGL shareholders have agreed to accept the Offer and consequently the Company ,according to the terms announced on 28 November 2012,  expects to retain an interest of approximately 29% in NGL and receive a cash consideration payment (before commission payable) upon closing of approximately $10.7M.  There can be no assurance that the  Offer will close until such time as all parties sign definitive agreements. A further announcement will be made in due course.

Andrew Bell, Red Rock Chairman comments: "The sale process has gone smoothly and efficiently and we look forward to an early conclusion and to planning 2013 field activities in Greenland, a process that needs to start soon, under the direction of a new partner".

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	Press Relations
Gerry Beaney / Daniela Amihood	020 7383 5100	Grant Thornton Corporate Finance	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

 

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