Issue of Shares, Warrants, update on Kenya and TVR
Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and other minerals, reported on 17 August 2020 the renewal of its licenses relating to a gold project in Kenya (the “Project”). As originally announced on 15 June 2018, as part of a transaction whereby Red Rock acquired the remaining beneficial interest in the Project from a subsidiary of Kansai Mining Corporation Limited (“Kansai”) the renewal of the licenses triggers the following actions by Red Rock:
· Payment of £25,000 to Kansai by the issue of 3,571,429 Red Rock shares (“Shares”) at a price of 0.7p a Share;
· Issue of a $1,000,000 Promissory Note payable in fifteen months to Kansai;
· Grant to Kansai of £500,000 of warrants exercisable for 30 months into Shares at 0.7p a Share.
A further announcement will be made in relation to future obligations to Kansai.
In addition, Red Rock has issued to Riverfort Global Opportunities PCC Limited and YA II PN Limited a total of 16,000,000 thirty six month warrants, exercisable as to half at a price of 1.6 pence a Share, and as to half at a price of 2.4 pence a Share, in consideration of the extension of existing facilities and grant of a six month repayment holiday on drawn amounts.
The Company has appointed CSA Global (UK) Limited to provide an updated Mineral Resource report for the Project. The purpose of this work is to bring the historic 1.2m oz mineral resource estimate reported by the Company in 2013 according to the JORC 2004 code into compliance with the JORC 2012 code, enabling it to be reported as a code-compliant Mineral Resource Estimate in accordance with an AIM Standard.
Red Rock Chairman Andrew Bell comments: “Obtaining a 100% interest in 2018 was an important step forward in adding value to the Project and enables us now to deal in respect of the Project with a free hand. Red Rock has come a very long way since its first modest involvement in Kenya, which was on a farm-in basis, has overcome all vicissitudes, and now controls what we believe to be a significant and potentially expandable deposit.
Our consultants will immediately begin the work to enable us to declare a compliant resource which we will notify as soon as it is completed.
This is an important step in our planning process for the next phases of exploration which will be aiming to build on the existing resource ounces and grade”.
Application has been made to the London Stock Exchange for Admission of the Shares, which will rank pari passu with the Company’s existing issued Ordinary Shares. Dealings are expected to commence at 8.00 a.m. on or around 24 November 2020.
Total Voting Rights (TVR)
Following the issue of the 3,571,429 new Ordinary Shares, the issued share capital of the Company consists of 825,338,881 ordinary shares of 0.01p each with voting rights. No Ordinary Shares are held in Treasury.
The above figure of 825,338,881 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the Disclosure and Transparency Rules.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use 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