Loan Agreement, Sale of Investment
RED ROCK RESOURCES PLC
Loan Agreement, Sale of Investments
Dated: 2 March 2011
Red Rock Resources plc ("Red Rock" or the "Company") announces that it has entered into a loan agreement with YA Global Master SPV Limited ('YA Global'), which is advised by Yorkville Advisors LLC ("Loan Agreement").
Under the terms of the Loan Agreement the Company has agreed to borrow up to US$9,000,000 from YA Global in three tranches of up to US$3,000,000 each. The first tranche is to be advanced as soon as practicable and the second and third tranches will, subject to the absolute discretion of YA Global, be advanced on 15 August 2011 and 15 December 2011. The loan carries interest at 12% p.a. and each tranche is to be repaid in scheduled instalments within 13 months of drawdown. The loan is secured under a Standby Equity Distribution Agreement ('SEDA') between Red Rock and YA Global entered into on 19 November 2009 and by security over certain liquid assets of Red Rock. The amount of the second and third tranches of the loan may be reduced if the value of the secured liquid assets falls.
The net loan proceeds will be available to finance the purchase of resources assets after applying US$730,000 to the partial repayment of the Company's previous US$3 million loan agreement with YA Global announced on 14 December 2010.
Red Rock also announces that it has sold 4,533,333 shares of Jupiter Mines Ltd (ASX: JMS) for a gross consideration of AUD 2,759,545.50. The Company retains 79,200,832 shares in JMS, equivalent to 4.52% of JMS's current issued share capital.
The Company considers that this facility, together with the recent share sales, will strengthen its financial position and its capacity to advance its current strategies in gold and in steel feed materials.
Enquiries:
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Red Rock Resources plc |
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Andrew Bell, Chairman |
020 7402 4580/07766 474849 |
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Sandra Spencer, Public and Investor Relations |
020 7402 4580 |
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Nominated Adviser |
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Religare Capital Markets Ltd |
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Peter Trevelyan-Clark/Ben Jeynes |
020 7444 0800 |
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Broker |
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Simple Investments Ltd |
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Nick Emerson |
01483 413500 |
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Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.
This information is provided by RNS