Red Rock Resources Share Discussion Threads

[neo26] 16/12/2022 10:01

To pay his wages.. Chuck Bell out..

[neo26] 16/12/2022 10:00

Totally destroyed shareholder value here, Bell has this company for his lifestyle perks.How he sold down rrr holdings in the aussie company which gave decent divi, invested steelmins or whatever they called which went bust.Sold shares higher up cos he wanted to buy daughter a house.Unbelievable

[terminator101] 15/12/2022 17:07

I love a bit of death spiral finance ;-)

[1choip] 15/12/2022 14:07

Really good in raising fund

[sclper] 15/12/2022 12:38

They have already been issued 2 tranches of shares. For starters they will be very keen to offload the 17million shares they received as a fee to convert this into cash

[noirua] 15/12/2022 12:06

Simplified to the RNS.
The Company will initially raise US$500,000 by way of a subscription by Diversified Metals Holdings, LLC for new shares to a value of US$548,000 [0.70p a share]. To be admitted to trading on AIM on 19 December 2022.

Diversified Metal may make an additional advance of US$1,000,000 by way of a further subscription for Shares to a value of US$1,098,000, within the next 18 months.

Subscriptions prepaying for Shares to be issued as requested, in one or more tranches, within twenty-four months of the date of the placing, at the Subscription Price, but subject to the Floor Price, as set out below:

The Shares will initially be equal to 0.7p per Share. Subject to the Floor Price described below:

The Price will reset after the initial month to the average of the five daily volume-weighted average prices selected by the subscriber during a twenty -day period immediately prior to the date of the subscriber's notice to issue Subscription Shares, less an 8% discount - rounded down to the nearest tenth of a pence.

If the share price is at or below 20 pence, half a pence if the share price is at above 20 pence and at or below 50 pence, or a whole pence if the share price is above 50 pence -
It means if the share price fell to 0.29p shares would be issued at 0.2p the floor price - concerning as Diversified Metals can sell shares into the market at a weak point. Manipulation might occur.

Red Rock can refuse to issue the shares and repay cash at a 9% premium if the formula used results in a price of less than 0.2p.

The Company will also have the right (but no obligation) to forego issuing shares in relation to the Subscriber's request for issuance and instead opt to repay the applicable subscription amount by making a payment to the Subscriber equal to the market value of the shares that would have otherwise been issued.

The Subscriber has agreed to certain, substantial, limitations on its ability to dispose of the Shares it receives. [ What are these limitations????????? ]

Diversified Metals is precluded from shorting the Company's Shares.

The Company will issue to Diversified Metal the 17,000,000 Shares (the "Fee Shares") (being the equivalent of GBP66,300 at the latest closing price on AIM 0.39p) in satisfaction of a fee. To be admitted to trading on AIM on 19 December 2022.

Admission to Trading on AIM and Total Voting Rights

The Company has also applied for admission of the Initial Subscription Shares to trading on the AIM, and this is expected to become effective on or about 19 December 2022.

Conclusion: RRR shares are safe as far as selling is concerned beyond the norm until Diversified Metals elects to buy more shares under the formula. As they can do this at any time it is up to investors to set their own gambit. If RRR obtains money from the DRC Arbitration and Elephant Oil IPOs then expect them to grab profits very quickly - get ready for fun and games.
Overall this is quite an acceptable move by Red Rock. Usually, I would criticise cash raisings but not this one. AB and Co have been quite clever enough here.

[alannlane] 15/12/2022 11:21

Hetties littLe Christmas gift to his shareholders...

[kemche] 15/12/2022 10:27

The 98 shares were a buy.

[kemche] 15/12/2022 10:05

I'm already saving up for the next fundraising.

[sclper] 15/12/2022 09:55

It needs really positive news to stop the share price sliding further. Anyone that buys shares now will know that Diversified Metals Holdings will be on the other side of the trade and most people won't be willing to take the risk. These types of death spiral finance facilities where the provider can sell at a discount to the current share price makes it very risky for people to invest and greatly limits the potential upside

[kemche] 15/12/2022 09:38

I continue to average down.

[algernon2] 15/12/2022 09:36

Ace of Wands- Inverted.

Reversed Ace of Wands Meaning
The reversed Ace of Wands indicates trials and tribulations that you will face in the near future. You might not have any direction, which leads to being uninspired or unmotivated. At this point of your life, you might not know what you really want to do. You don’t know how to get out of the slump.

[kemche] 15/12/2022 08:40

This should see him through to March at the very least.

[alannlane] 15/12/2022 08:24

And then came the death spiral...

[kemche] 15/12/2022 08:17

A lanstead style death spiral and possibly the 32nd fundraising. All the LNW investors will be giddy at the prospect.

GLA LTHers!

A true game changer. And so unlike the fat man.

[sclper] 15/12/2022 08:08

It's a death spiral finance deal. The premium is just nonsense to try to fool mug punters. The share price will be destroyed by the subscriber dumping shares unless the arbitration award comes in from DRC which looks low probability at the moment

[captain_kurt] 15/12/2022 07:59

Keeping the lights on while we wait for developments

[noirua] 13/12/2022 19:14

Ballarat Goldfields and Berringa 2004:
Ballarat unveils Berringa
BALLARAT Goldfields believes its Berringa gold project near the historic mining centre of Ballarat in Victoria has a “risk weighted” exploration potential of 900,000 ounces, of which 250,000oz have been assessed to occur above 300m depth.

Ballarat Goldfields NL:

[noirua] 13/12/2022 15:50

Berringa Historic


The Berringa Mine closed in 1953 and I somehow think between 1860 and 1954 some exploration must have occurred fairly close to the mine area itself. As they appear to have walked away in 1954 one wonders.

The mine was within the Colony of Victoria until 1901.

[noirua] 13/12/2022 09:47

South Birthday, Berringa Syndicate, and Kangaroo East mines Berringa, Victoria, Australia.


Arrangements have been made with local accredited assay laboratories for gold focused assay testing with expedited turnaround on a batch sampling basis. Subject to the pre-Christmas drilling timetable, first assay results are expected in early 2023.

The Berringa district is situated about 30 kilometres south-west of Ballarat. Auriferous quartz reefs occur within the Ordovician country rock which is composed of sandstones and slates. Alluvial mining commenced in the early 1850s, and quartz mining and crushing in the 1860s. Up to five mines were operating in a boom period from 1897 to about 1917.

[kemche] 13/12/2022 09:14

This is huge news. Whoosh!

[noirua] 13/12/2022 09:08

Some interest in the drilling at Berringa this morning which seems to have been got underway quickly. Probably more important to Red Rock than Power Metal due to RRR's much lower market cap.
Whether sufficient new exploration was done I'm unsure so maybe just a punt in the area close to the old mine hoping it extends further is worth the effort. Time will tell.

[noirua] 13/12/2022 01:38

Evil Diaries: Bribes All Round
By Evil Knievil 07 December 2022