Completion of two year bond issuance

RNS Number : 1220W

Red Rock Resources plc

20 December 2013

 

Red Rock Resources Plc

("Red Rock" or the "Company")

Completion of Two Year Bond Issuance

20 December 2013

Red Rock Resources plc, the mining and exploration company with an iron ore project in Greenland, a producing gold mine in Colombia, and advanced gold exploration in Kenya is pleased to announce that it has completed the issuance of £500,000 via a secured bond, arranged by the UK Bond Network Limited.

The bond will have a term of 2 years and a coupon of 14% per annum and is to be 50% amortized with payments starting in June 2014 and continuing on a semi-annual basis.  The bond will be secured by way of a debenture and a cash escrow arrangement, and there may be a further return to participating investors linked to the performance and any future sale of the Company's Jupiter Mines Limited shareholding above an agreed fixed price over the period of the loan.  The loan maybe be repaid at any time following the first anniversary of the date of issuance at no additional cost to the Company. 

The notes have been placed to institutional, professional, sophisticated and high net worth investors.  The proceeds of the facility will be applied for working capital purposes and for feasibility study activities at the Company's Kenya gold project. 

Company Chairman Andrew Bell comments:

"The Company is pleased to complete the issuance of this bond via the UK Bond Network. We are impressed with both the bond product and their execution of this transaction.  This facility offers a longer term than the majority of debt providers in our sector and allows the Company to more closely match our borrowings and repayment period with the typical timelines for an exploration project's development.  This instrument further diversifies our sources of funding and puts the Company on a stronger financial footing as we prepare to enter 2014 " 

For further information contact:

Andrew Bell0207 747 9990 or 0776 647 4849                 Chairman Red Rock Resources plc

Christopher Maule 020 3701 0111 or 07525669953        CEO UK Bond Network Limited

Colin Aaronson / David Hignell 020 7383 5100            NOMAD Grant Thornton UK LLP

Nick Emerson 01483 413500                                          Broker SI Capital Ltd.

Guy Wheatley 02073828416                                          Joint Broker Beaufort Securities Ltd

Rupert Trefgarne 02031288817                                      Media Relations MHP Communications

 

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