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Red Rock Resources (RRR)

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Monday 01 March, 2021

Red Rock Resources

Kansai - completion of purchase

RNS Number : 7636Q
Red Rock Resources plc
01 March 2021
 

Red Rock Resources PLC

("Red Rock" or the "Company")

Completion of Purchase

Conditional Issue of Shares and Warrants

 

1 March 2021

 

Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and other minerals, announces further to its announcement of 18 November 2020, and announcements on 17 August 2020 and 31 December 2020,  the terms of fulfilment of its remaining obligations to Kansai Mining Corporation Ltd ("Kansai") under the transaction announced on 15 June 2018 whereby Red Rock was to acquire the remaining beneficial interest in the Mikei gold project in Kenya (the "Project") from a subsidiary of Kansai following the renewal of the Project licenses.

The Company has paid US$1,000,000 of the US$2,500,000 payment obligation by paying US$1,000,000 in cash and Kansai has elected to receive the balance of $1,500,000 in the form of an issue of 101,550,000 new Ordinary Shares of 0.01p in the Company ("Shares" and "Share Payment") at a price of 1.05 pence per Share to Kansai.

The Issue of Shares for the Share Payment is conditional on the approval of Red Rock shareholders.

Kansai has agreed to sell 52,437,048 Shares to be issued under the Share Payment to a number of substantial private investors in a transaction arranged by Bespoke Capital Solutions Limited. Kansai has stated that it intends to hold the remaining 49,112,953 Shares for long term investment and is excited about the potential of the Kenyan, DRC, Australian and other assets of the Company.

The Company will seek approval at a general meeting for the issue of the Shares required for the Share Payment and for the issue of non-tradeable warrants with a life of two years and an exercise price of 2 pence to be issued to Kansai or its nominees on the basis of one warrant for each two Shares issued under the Share Payment.

Red Rock Chairman Andrew Bell comments : "These payments to Kansai will complete the  purchase obligations under which we acquired a 100% beneficial interest in the Project and represent a milestone in the life of the Company. Together with the publication of a new Mineral Resource Estimate under the JORC 2012 Code, announced last week, this secures Kenya's position as a key asset going forward.

The retention of a significant number of Shares by Kansai will be a strong vote of confidence in our prospects. We look forward to welcoming a new shareholder with a long term perspective and a deep knowledge of the mining sector.

The cash, share and asset position of Red Rock will be greatly strengthened by these developments, which put the Company in a strong position as it prepares for drill programmes in Kenya and the DRC and an IPO for its Australian assets."

Further Information

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information, please contact:

Andrew Bell 0207 747 9990                                                          Chairman Red Rock Resources Plc

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

Mark Treharne 0203 700 2500   Broker Pello Capital Limited

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