Red Rock Resources Plc, the natural resource development company with interests in gold and steel feed materials, announces, further to the announcement of 5th April 2017, that it has received the final payment of US$750,000 plus interest, on behalf of its subsidiary Colombia Milling Limited, in respect of the US$1,000,000 Promissory Note (“PN”) held by Red Rock as part of the consideration for the sale of the El Limon mine in 2015 from Para Resources, Inc. (TSXV:PBR)(“Para”).
Red Rock has applied CAN$500,000 of the amount due to a subscription for 2,500,000 shares in the Para private placement at CAN$0.20 per Para share, representing approximately 1.57% of the enlarged issued share capital. Each Para placement share subscribed for has an attached 3 year warrant exercisable at CAN$0.30 per Para share.
The Company has therefore received the US$376,500 balance plus US$13,658 due to Red Rock in respect of gold royalties for the quarter ended 31st March 2018. Applicable interest is being calculated and will be remitted shortly.
Andrew Bell, Chairman of Red Rock comments: “The Company considered it beneficial to take approximately half of what we were owed on expiry of the Promissory Note in the form of Para shares, with the balance in cash. We see Para as being at a possible turning point, and look forward to increasing royalties from the next quarter as the higher quantities of gold already being mined at El Limon are processed and sold.”
Background on Para Resources
Para is a Canadian gold explorer and producer listed on the Toronto Venture Exchange. The share price of Para closed at CAN$0.21 on 5th June 2018, before the announcement of the first closing of a non-brokered private placement of shares to raise a total CAN$6.4m at CAN$0.20 per share by the issue of 14,049,000 shares. The principal assets of Para are 84% of the producing El Limon gold mine and refurbished plant in Antioquia, Colombia, and the recently acquired Gold Road Mine and mill in the Oatman district of Arizona which are being brought back into production. As at 31st December 2017, Para reported shareholders’ funds of CAN$6,554,868 and for the 15 month period to 31st December 2017 pre-tax losses of CAN$(10,231,918).
6th June 2018: Andrew Bell provides an update of progress being made within Red Rock Resources and the different sources of revenues and cash flow the company is receiving.
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