Update; Restructuring

RNS Number : 1475B

Red Rock Resources plc

05 October 2015

 

RED ROCK RESOURCES PLC

("Red Rock" or the "Company")

Update; Restructuring

5 October 2015

Restructuring

The Company announces, further to its announcement of 21 September 2015, that it has concluded the current phase of its cost and capability review. As a result of this review it has implemented changes, including substantial reductions in staffing, that will lead to a reduction of over 50% in net overheads per month (including also office and administration, professional services, and listing-related costs) by January 2015.

Red Rock has eliminated costs and responsibilities associated with the assets held in Colombia. Given the legal process under way in Kenya, the only currently active exploration project is Ivory Coast. The early stages of exploration in Ivory Coast on the ground will be carried out using local resources, and through its relationships and contacts the Company will continue to have access on an as-needed basis to any necessary skill-sets for all its activities. 

Update

Star Striker Limited (ASX:SRT)("SRT") has announced that it will carry out a placement to raise up to AUD 780,000 at a price of AUD 0.008 per share. Red Rock has 65,335,134 shares in SRT (amounting to approximately 8.92% of the share capital as enlarged by the placement), and 5,213,290 options exercisable up to 31 March 2016 at a price of AUD 0.004 per SRT share. At close of business on 2 October 2015 the value of this holding was AUD 755,179. A copy of the announcement to the ASX is available on:    http://www.asx.com.au/asxpdf/20151001/pdf/431s05ckczjg4g.pdf 

The Chairman of Red Rock, Andrew Bell, states: "We have been well served by our project teams and finance staff, but the market has changed.

We have worked over the last three years on restructuring the balance sheet and cutting costs and on disposals of mature or non-core assets. We are now discussing potential transactions that will bring in earnings, and expect further opportunities of this kind to be available. Announcements will be made in due course.

We welcome the move by Star Striker to further strengthen its balance sheet, supporting the value of our holding."

For further information, please contact:

Andrew Bell  0207 747 9990 or 0776 647 4849                            Chairman Red Rock Resources plc

Roland Cornish/Rosalind Hill Abrahams 0207 628 3396          NOMAD Beaumont Cornish Limited

Jason Robertson 0129 351 7744                                                Broker Dowgate Capital Stockbrokers Ltd.

Christian Pickel 0203 128 8208                                                 Media Relations MHP Communications

 

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