Issue of Equity

RNS Number : 9763W

Red Rock Resources plc

01 February 2013

 

Red Rock Resources Plc

("Red Rock" or the "Company")

Issue of Equity and Placement of Shares

1 February 2013

Red Rock Resources plc announces that it has issued in aggregate 58,532,490 new ordinary shares at an average price representing £0.010422 (the "New Shares"), representing approximately 5.07% of the Company's issued share capital to raise in aggregate £610,000 excluding fees. 

This raise represents two transactions as set out below. 

SEDA

YA Global Master SPV, Ltd. ('YA Global'), which is advised by Yorkville Advisors LLC ('Yorkville'), has subscribed for 33,532,490 ordinary shares in the Company at a price of approximately £0.0107 under the terms of the existing Standby Equity Distribution Agreement ("SEDA") between Red Rock and YA Global as announced on 14 December 2010. 

Placing

Additionally, under a placing various institutional investors have subscribed for 25,000,000 ordinary shares in the Company at a price of £0.01.  These investors shall be entitled to receive 1/3^rd of a warrant for each ordinary share entitling the warrantholders to subscribe for a maximum of 8,333,333 ordinary shares at an exercise price of £0.015 over a subscription period of eighteen months from the 31^st of January 2013.   

The proceeds of the SEDA and the Placing are to be utilized for exploration and other work at the Company's Kenyan gold project, to support corporate restructuring efforts relating to its Kenyan interests, for working capital, and to complete the recent loan refinancing process with Yorkville Advisors (as announced on 20 December 2012).  The Company intends that this financing will sustain operational levels while it awaits completion of the sale processes of its projects in Greenland and Colombia.    

Application will be made to the London Stock Exchange for the 58,532,490 New Shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM.  Dealings are expected to commence at 8.00 a.m. on or around 07 February 2013, following which the Company's total issued ordinary share capital will be 1,155,274,254 ordinary shares of £0.001. 

For further information contact:

Andrew Bell020 7402 4580 or 07766 474849                  Chairman Red Rock Resources plc

Sandra Spencer 020 7402 4580 or 07757 660 798            Investor Relations Red Rock Resources plc

Gerry Beaney / Daniela Amihood 020 7383 5100           NOMAD Grant Thornton Corp Finance

Nick Emerson 01483 413500                                          Broker Simple Investments Ltd

 

END

 

 

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