Issue of Shares & Purchase of Jupiter Mines Shares

RNS Number : 0603T

Red Rock Resources plc

14 November 2013

 



Red Rock Resources Plc

("Red Rock" or the "Company")

Issue of Shares and Purchase of Jupiter Mines shares

14 November 2013

Red Rock announces that Cornhill Capital Ltd. ('Cornhill'), has secured a subscription for 45,000,000 ordinary shares of 0.1 pence each ("Shares") in the Company by a long-term investor (the "Investor") at a price of 0.66p per Share. (the "Subscription")   

The gross proceeds of the Subscription are £297,000. The Subscription is conditional on the issue and allotment of the Shares and on the Shares being admitted to trading on AIM.

The proceeds of the Subscription are being applied towards the purchase from the Investor of 8,000,000 shares in Jupiter Mines Ltd (ASX:JMS)("Jupiter") at a price of AUD 0.056 per Jupiter share and a total cost of AUD 448,000 (£261,414 approximately). Following the Subscription the Company's holding in Jupiter will be 27,674,375 Jupiter shares (1.21%). Red Rock retains a 0.75% gross revenue royalty over Jupiter's Mt Ida project, and non-manganese mineral rights over a further Jupiter tenement.  

As the Company's existing authorities to issue shares have been largely utilised, the Company will shortly be sending a circular convening a general meeting at which shareholders will be asked to give the directors authorities to issue Shares. . In addition to enabling Red Rock to complete the issue of Shares to Cornhill, the authorities will give the directors flexibility in responding to other opportunities.  A copy of the circular will be available on the Company's website,  www.rrrplc.com.

Red Rock Chairman Andrew Bell comments: "Since we last sold stock in Jupiter in early July Red Rock's share price has risen nearly 80%, while Jupiter's has declined by over 20% despite announcing major contracts. Jupiter intends to delist, which makes it impossible for some funds to hold, but this is not a consideration for us as whenever we have sold it has been to a major holder, and Jupiter intends to assist buyers and sellers to match transactions after delisting. The current price we believe is an investment opportunity we cannot match elsewhere and gives us an opportunity to strengthen the Company's long-term asset position. We intend to seek shareholder approval for the placing to Cornhill."

For further information contact:

Andrew Bell 0207 747 9990  or 0776 647 4849	Chairman Red Rock Resources plc
Sandra Spencer 0207 747 9990 or 0775 766 0798	Investor Relations Red Rock Resources plc
Colin Aaronson / David Hignell 020 7383 5100	NOMAD Grant Thornton UK LLP
Nick Emerson 01483 413500 Rupert Trefgarne 0203128 8817	Broker SI Capital Ltd Media Relations MHP Communications

 

END

 

 

MSCGGGMAGUPWGWC