Red Rock Resources PLC (AIM:RRR) Issue of Convertible Notes and Warrants

Red Rock Resources Plc, the natural resource development company with interests in gold, steel feed materials and oil production, announces that it has raised £495,000 by the issue (“Tranche 1”) of £495,000 of Convertible Notes (“Notes”) with accompanying Warrants (“Warrants”) to high net worth investors.

Andrew Bell, Chairman, comments: “It is fifteen months since we last raised public funding, and that was at 0.4p a Share. Now we raise further funds which are convertible into Shares at 0.8p, which is twice the price of that issue, and is a premium to the price at which our shares are currently trading in the market. We shall use the proceeds primarily to reduce our exposure under the back to back financing facilities we took out to enable our investment in the Steelmin ferrosilicon plant at Jajce (announced 23 June), which proceeds towards an expected January 2018 production start date.”   

The Notes are being issued at par and are convertible into Ordinary Shares of £0.0001 in Red Rock (“Shares”) at a price of 0.8 pence per Share. Each Note has a denomination of £1,000 and is thus convertible into 125,000 new Shares in the Company. Conversion may take place at any time up to the final redemption date of 19 December 2018.

Each Note holder also receives 62,500 Warrants for each Note subscribed. Each Warrant entitles the holder to subscribe for Shares at any time up to 30 April 2019 at a price of 1.4 pence per Share.

The interest rate on the Notes is 10% per annum, accruing monthly.

Up to £1,000,000 of Notes may be issued, in one or more tranches. The maximum number of new Shares that could fall to be issued upon exercise of all of the Notes issued in Tranche 1 is 61,875,000, and the maximum number of new Shares that could fall to be issued upon exercise of all of the Warrants issued in Tranche 1 (for an additional consideration to the Company of £433,125) is 30,937,500.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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