Red Rock Resources plc Acquisition of Further Interest in Goldstone (5159F)
28 July 2016 - 9:57AM
UK Regulatory
TIDMRRR
RNS Number : 5159F
Red Rock Resources plc
28 July 2016
Red Rock Resources plc
("Red Rock" or the "Company")
Acquisition of Further Interest
in Goldstone Resources Ltd
28 July 2016
Red Rock Resources plc, the mining and exploration company with
interests in gold and oil production, announces that is has agreed
to acquire as part of a placing of shares by GRL, and subject to
GRL shareholder approval at a general meeting, a further 3,857,400
shares of Goldstone Resources Ltd ("GRL")(AIM:GRL) at a price of
2.5 pence per share. This acquisition, together with the
acquisition announced on 28 April 2016, would on completion bring
Red Rock's total holding in GRL to 9,863,987 shares. Following
completion, Red Rock's holding in the issued shares of GRL would
remain at 9.645%.
The Company will also receive 3,857,400 GRL Warrants with an
exercise price of 5p and a life of two years.
Andrew Bell, Chairman, comments: "Our investment of GBP112,500
in 6,006,587 Goldstone shares in April has a value today of
GBP165,165 and has set in motion a chain of events that has already
added value to and new interest in GRL. As GRL puts itself on a
sound footing with a GBP1,000,000 financing, we look forward to the
immediate resumption of an active drilling programme to expand the
gold Resource of the company. We are glad of the opportunity to
follow our investment and increase our gold footprint in West
Africa in a company with promising assets and a technically capable
management."
Other Information
GRL is an exploration company with exploration skills that focus
on West and Central Africa. The assets include the Homase and
Akrokerri projects to the East and North of AngloGold Ashanti's
Obuasi mine in the Ashanti Gold Belt in Ghana. These projects have
a JORC Mineral Resource of 602,000 oz of gold at 1.77 g/t. Other
licenses are held in Gabon and Senegal.
In the year to 31 December 2015 GRL reported pre-tax losses of
USD 1,297,923.
The consideration for the acquisition is GBP96,435 and is
payable in cash subject to the approval of GRL shareholders to the
necessary authorities at the Annual General Meeting of GRL to be
held on 28 July 2016.
At the close of business on 27 July 2016 the price of GRL shares
was 2.75 pence and the market capitalisation of GRL was
GBP1.79m.
Red Rock will pay for the acquisition from available cash
resources and facilities.
The information contained within this announcement is deemed to
constitute inside information under the Market Abuse Regulations
(EU) No 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 0129 351 7744 Broker Dowgate Capital
Stockbrokers Ltd
This information is provided by RNS
The company news service from the London Stock Exchange
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July 28, 2016 04:57 ET (08:57 GMT)