SEDA and Loan

RNS Number : 9583X

Red Rock Resources plc

14 December 2010

 



RED ROCK RESOURCES PLC

SEDA and Loan

Dated: 14 December 2010

Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Kenya and Colombia, and interests in steel feed, uranium, and rare earths reports that it has entered into a Standby Equity Distribution Agreement ('SEDA') for up to £10,500,000 with YA Global Master SPV Limited ('YA Global'), which is advised by Yorkville Advisors, LLC, an investment group headquartered in New York and active across North America, Europe and the Asia Pacific region.

Under the SEDA, YA Global has agreed to subscribe in tranches for up to a maximum of £10,500,000 of the Company's ordinary shares of 0.1 pence each ('Ordinary Shares') over a period of up to 36 months from the date of the agreement. Subscriptions will be at a price calculated by reference to the market price at the time of subscription and will take place at timings and intervals and in sizes determined by Red Rock, subject to some limitations including marketability which may limit the total amount available under the SEDA.

The existing Standby Equity Distribution Agreement with YA Global, dated 30 April 2009, for up to £3,000,000 has been simultaneously cancelled with £500,000 of the commitment amount undrawn at the time of cancellation.

Red Rock has subsequently entered into a new loan agreement with YA Global, under which it has borrowed US$3,000,000 from YA Global. The loan carries interest at 12% p.a. and is repayable in five instalments with the last instalment due on 3 May 2011 (the "Loan"). The Loan is secured under the SEDA and by security over 21,266,540 of the ordinary shares in Jupiter Mines Limited held by Red Rock. Should the Company decide to sell any of its Jupiter Mines Limited shares, the proceeds of such a sale must first be applied to the repayment of the Loan before being applied to any other use.

Following the repayment of the balance of a loan dated 16 September 2010 from YA Global to Red Rock, implementation fees and associated expenses in relation to the SEDA and the Loan, the Company expects the Loan to provide approximately US$2,000,000 to purchase resources assets.

The purpose of these arrangements is to diversify the Company's funding options and to enhance the Company's capability to take decisions on further investment.

Enquiries:

Enquiries:

Andrew Bell	0207 402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	0207 402 4580 or 07757 660 798	Red Rock Resources plc	Public and Investor Relations
Peter Trevelyan-Clark/ Ben Jeynes	020 7444 0800	Religare Capital Markets	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

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

 

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