Andrew Bell, Chairman of Red Rock, comments: “The Agreement entered into in September 2017 provided for some substitution of the original assets .
After due diligence, and following substitution, and the provision of alternatives in compensation for assets shown to be unavailable, we consider, following discussion with Gécamines experts and with our consultant geologist, that the assets now forming the Project justify proceeding with the transaction.
The fact they do not include tailings means that some extra preparatory work will be required, and this is reflected in the postponement of part of the cash consideration. A detailed geological report by our consultant geologists Minex Consulting SA is being prepared, which will form the basis for a review, and further announcements will be made as work progresses.”
Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and oil production, announces latest developments in relation to the conditional joint venture agreement (“Agreement”) announced on 26 September 2017 for the development of cobalt and copper assets (the “Project”) in the Democratic Republic of Congo (“DRC”) under which Red Rock will acquire 50.1% on completion of the joint venture.
Further to the announcements of 30 August 2018 and 28 September 2018 reducing the cost and updating certain terms of the joint venture, Red Rock considers that the conditions precedent noted as remaining in the announcement of 30 August 2018 (being defining and outlining the final areas comprising the Project and legal and technical due diligence) have now been fulfilled, and is therefore proceeding to completion with Bring Minerals SAU (“BRO”), its counterparty under the updated terms of the Agreement.
· Red Rock has made the initial cash payment of $250,000
· Cash payments of $250,000 and £490,000, the latter payable in Red Rock shares (“Shares”) at 0.7 pence a share with attached 1-for-1 three year warrants to subscribe for new Shares at 1p (“Warrants”), will be made upon execution of the detailed documents governing the conduct of the joint venture
· Further payments will be made in accordance with the announcement of 30 August 2018, being $200,000 upon the earliest of (a) confirmation of economic mineralisation to the satisfaction of the parties (b) definition of a compliant Resource at Indicated or above status or of a Reserve (c) decision to mine and $1m as a post-completion obligation if and when commercial production begins.
· Formation of a joint venture company between Red Rock, BRO and local partner Vumilia Pendeza SA in the proportions 50.1:29.9:20
Extracts from the report provided by Red Rock’s consultant geologists are set out below:
“The JV partnership comprises 3 copper-cobalt permits in the heart of the Katanga segment of the Central African Copperbelt. These are the Musonoi PE4962 equivalent to 1.683km2 just 3km west of Kolwezi; the Kamukongo block PE663 some 5.268km2 in area and <20km southeast of Kolwezi, and the 3.503km2 Kasombo South permit (PE2360) just west of Lubumbashi.
This illustration is derived from: Schuh, W., 2012. Geology of the Tenke Fungurume Sediment-hosted Stratabound Copper-Cobalt District, Katanga, Democratic Republic of Congo, Soc. Econ. Geol. Spec. Pub.16, pp299-301
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