Red Rock Resources plc Issue of Convertible Notes and Warrants (1506Z)

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RNS Number : 1506Z

Red Rock Resources plc

12 December 2017

Red Rock Resources PLC

("Red Rock" or the "Company")

Issue of Convertible Notes and Warrants - Tranche 2

12 December 2017

Red Rock Resources Plc, the natural resource development company with interests in gold, steel feed materials and oil production, announces, further to the announcement of 10 November 2017, that it has raised GBP215,000 by the issue ("Tranche 2") of GBP215,000 of Convertible Notes ("Notes") with accompanying Warrants ("Warrants") to high net worth investors.

Andrew Bell, Chairman, comments: "After the Tranche 1 raise of GBP495,000 in November, we have been offered GBP215,000 of Tranche 2 funds for a total of GBP710,000. Again the conversion into Shares is at 0.8p, which is a premium to the market price. We shall use the proceeds primarily to further reduce our exposure under the back to back financing facilities we took out to enable our investment in the Steelmin ferrosilicon plant at Jajce."

The Notes are being issued at par and are convertible into Ordinary Shares of GBP0.0001 in Red Rock ("Shares") at a price of 0.8 pence per Share. Each Note has a denomination of GBP1,000 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 GBP1,000,000 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 2 is 26,875,000, and the maximum number of new Shares that could fall to be issued upon exercise of all of the Warrants issued in Tranche 2 (for an additional consideration to the Company of GBP183,750) is 13,125,000.

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

For further information, please contact:

Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc

Scott Kaintz 0207 747 9990 Director Red Rock Resources Plc

   Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396           NOMAD Beaumont Cornish Limited 

Jason Robertson 0207 374 2212 Broker First Equity Limited

This information is provided by RNS

The company news service from the London Stock Exchange

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December 12, 2017 12:51 ET (17:51 GMT)