Proposed Disposal of Interest in Colombia

RNS Number : 7895H

Red Rock Resources plc

17 July 2012

 



RED ROCK RESOURCES PLC

Proposed Disposal of Interest in Four Points Mining SAS

Dated: 17 July 2012

Red Rock Resources plc ("Red Rock" or the "Company) has received a proposal (subject to due diligence and definitive agreement) from Ashmont Resources Corporation ("Ashmont"), a private Canadian company, to acquire Red Rock's wholly owned subsidiary, American Gold Mines Ltd, which holds a 50.5% interest in Four Points Mining SAS ("FPM"), ("the Proposal").

FPM is the owner of the El Limon and El Mango mines in Antioquia, Colombia.

The Proposal is being made on the same terms to the other shareholders of FPM (together with Red Rock, the "Vendors"), so that on the completion, Ashmont would directly and indirectly own a 100% interest in the shares of FPM. The Proposal is in the form of a Letter of Intent accepted by the Vendors yesterday which sets out the basic terms and conditions on which the parties are willing to negotiate and enter into a definitive agreement.

There can be no certainty that the parties will enter into a definitive contract. The Proposal is subject to due diligence, which is currently being carried out, and the signing of a definitive agreement.

The Company will make further announcements in due course.

Enquiries:

Andrew Bell	020 7099 5840 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	020 7099 5840 or 07757 660 798	Red Rock Resources plc	Press Relations
Gerry Beaney/ Daniela Amihood	020 7383 5100	Grant Thornton Corporate Finance	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

 

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