Red Rock Resources Plc, the natural resource investment and development company, announces, further to its announcement of 29 March 2018, an update on progress on the proposed Joint Venture with Cobalt Blue Limited (“Cobalt Blue”) previously announced on the 27 September 2017.
RRR and Cobalt Blue continue to work together on due diligence, are making good progress with local documentation and background research, and expect to have a further announcement in due course.
Red Rock also announces, further to its announcement of 26 June 2015, that a revision to its agreement with Kansai Mining Corporation (“Kansai”) of 20 June 2015 (“2015 Agreement”) was executed on 11 June 2018 (“2018 Agreement”). The effect of the revision is that Kansai exchanges its 25% carried interest in the mineral assets of Mid Migori Mining (“MMM” and “Assets”) under the 2015 Agreement for a $50,000 payment, leaving Red Rock with a 100% interest. In the event of a renewal or reissue of licenses covering the Assets the Company will within three months make further payments, subject to such renewal or resissue not being on unduly onerous terms, as follows: (1) $2.5m payable in cash, (2) a $1m promissory note payable 15 months after issue, and (3) £500,000 of warrants into Red Rock shares at a price 20% above their average closing price on the three trading days prior to issue.
Red Rock and MMM instigated in May 2015 proceedings for judicial review in relation to a Ministerial decision which purported to deprive them of the Assets. Those proceedings are not concluded.
Andrew Bell, Chairman of Red Rock comments: “Our local counterparties in Congo have had to spend much time resolving a dispute involving major companies operating in the country, which has understandably affected their ability to follow up with us expeditiously.
With Cobalt Blue we have continued to work patiently on behalf of the Joint Venture, and remain confident of progress.
The solution arrived at in relation to MMM gives us the flexibility of action that will maximise the chance of our being able to obtain license renewal and then to progress the project.“
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned