Placement of Shares and Loan Refinancing

RNS Number : 0861U

Red Rock Resources plc

20 December 2012

 



Red Rock Resources Plc

("Red Rock" or the "Company")

Placement of Shares and Loan Refinancing

20 December 2012

Red Rock announces that YA Global Master SPV, Ltd. ('YA Global'), which is advised by Yorkville Advisors LLC ('Yorkville'), has subscribed for 10,603,964 ordinary shares of 0.1 pence each ("Shares") in the Company under the terms of the Standby Equity Distribution Agreement ("SEDA") between Red Rock and YA Global as announced on 14 December 2010, at a price of 1.0845 pence per Share (the "Subscription"). The gross proceeds of the Subscription are £115,000, conditional on the Shares being admitted to trading on AIM.

The proceeds of the Subscription are being applied towards to reducing the Company's loan with YA Global Master SPV Ltd, announced 2 March 2011. 

Company Chairman Andrew Bell comments:

"Following our recent efforts toward the retirement of a significant part of our debt with Cornhill Capital announced on 17 December 2012, we continue to take steps to reduce our overall corporate debt profile.  This placing will go towards further repayment of our existing loan facility with YA Global, and simultaneously we have reached an agreement with Yorkville to reschedule our remaining liabilities out into 2013.  These moves allow us additional time to complete on-going corporate transactions involving our projects in Greenland, Colombia, and Kenya before making further debt repayments.  Our long working relationship with Yorkville has provided us the flexibility to minimise debt related dilution at today's depressed market levels."      

Following the Subscription, the Company's total issued ordinary share capital will be 1,086,741,764 ordinary shares of 0.1p. Application has been made to the London Stock Exchange for the 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 28 December 2012.

For further information contact:

Andrew Bell 020 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

Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.

 

END

 

 

MSCPGGUWPUPPGMU