Red Rock Resources Share Discussion Threads

[on target] 14/3/2014 17:35

Caaaaaaaaaaaaaaaaaant

[roger ring] 14/3/2014 17:18

Well said Andrew.

[atinos auntie ettie] 14/3/2014 16:40

The Greenland project was successfully progressed from grassroots when it was an open question if mineralisation even existed through to reporting a resource. Progression from hereon in is unhelped by the Fe price but should not diminish the success up to that point. It should be seen as proof of concept that the company can do the grassroots stuff, and is an emblem of that. With the project available for sale and prior partner no longer with a controlling interest, the holding company has been renamed to that of the project in a piece of good housekeeping. A sale can complete any time but with precious mineral prices buoyant the time is apt to refocus on gold and the Ivory Coast project is a welcome addition to that.

[johndee] 14/3/2014 14:25

RGM shooting up well today.

[noirua] 14/3/2014 14:23

The rising gold price looks better for agreement for the sale of El Limon. A price likely to be set with royalties at about 1.5%.

The Greenland asset sale may be held up because the bidder only wants to pay providing certain hurdles are met. Rather than much cash up front being paid the major amount to be paid by royalties.

Jupiter Mines appear in no hurry to seek a Singapore quote. However, it is possible a buyer could be found for the stake at some stage, if RRR become desperate.

[affemoose] 10/3/2014 08:59

And a new bird is found to chase. So far there has been massive dilution of shareholder value to fund various 'projects' that have yet to realise any significant value - i.e. CASH.

The investors money for Africa is a drop in the ocean, you cannot do much with a hundred grand. Buy a digger, run a few drills, that's it.

So - how will they fund this going forwards? Hmmm, now let me think - share dilution???

[dimmerginger] 09/3/2014 19:29

The company Apologists briar has said lots of work carried out in ivory coast prior to buy a random field. its worrying that working hours have been spent on a project where it cost millions to get yer first ounce out. but i guess long term holders gave AB the green light to down tools on other projects to concentrate in Africa

[bam bam rubble] 04/3/2014 18:04

Support/resistance lines;

[johndee] 04/3/2014 15:22

"Fukushima meant such a change in the timings and the expectations of plants that prices fell. The long-term is good, but if we wait for that Resource Star will be utterly dead. So we're looking for a new role for Resource Star. We had someone come in for a A$100,000 placing and we're looking for projects to come in."

[johndee] 04/3/2014 15:19

Red Rock Resources Starts To Move Out Of Consolidation Mode, With The Acquisition Of New Ground In Cote D'Ivoire
04 Mar 2014
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Andrew Bell
Andrew Bell
By Alastair Ford

"2013 was a year of restructuring, consolidating, and preparing for this year", says Red Rock Resources chief Andrew Bell.

In common with many of the more experienced junior miners, Red Rock used the worst resources market in more than a decade to undertake a spot of housekeeping, while keeping an eye out for potential bargains.

Down went the company's debt by a factor of one third, and onto the block went several Red Rock assets, including an iron ore project in Greenland, a 50 per cent stake in the producing El Limon gold mine in Columbia, and the company's Australian-listed uranium shell Resource Star.

No deal has yet been done on any of these, but it may not be long now. Andrew Bell is a consummate deal-maker, and he's been negotiations on the Greenland assets with another party for several months now, although he won't be specific about what stage he's at.

"In Greenland we're still waiting for a transaction which if it succeeds could bring in US$10 million-plus", he says. In the meantime, a new deal has now been done on gold exploration ground in Cote D'Ivoire. New money has come in at a modest discount to support work there, although at this stage details of the precise opportunity there are thin on the ground.

As far as Red Rock's gold interests are concerned, far more can be said about El Lomon, where significant operational improvements have been delivered over the past few months, meaning that the plan to sell it is now up for reconsideration.

"In the course of 12 months", says Andrew, "we managed to more than halve the cost per ounce of production. We did that when the gold price was coming down and without increasing our production. So in the course of 2013 we actually made Columbia into quite a successful operation."

That success meant that the local operator of El Limon was able to pay down US$1 million of debt, putting the operation on a much more stable financial footing.

"Now we're not sure whether we should be selling just at the moment", says Andrew. The recent uptick in the gold price lends further credence to the idea that keeping hold of El Limon for the time being just might be the right thing to do."If we can improve production there, we could actually have fairly substantial flows of profit back to us", says Andrew.

"In 2013 there was the repayment of creditors by local companies. In 2014 there's a real prospect we'll be sending money back to London. We're planning a trip there next month and we'll look at every aspect of that."

Meanwhile, as far as Resource Star is concerned, a major rethink is now underway regarding the previous focus on uranium. Long-term Andrew is bullish on uranium, but in the short term he's not so sure, even allowing for the recent rally.

"The uranium business critically depends on the construction schedule of power plants", he says.

[trigger blade] 04/3/2014 15:11

Ettie,

Is there any chance that the "one out" might be sold for a profit?

Just a thought like.....

[quasar81] 04/3/2014 14:41

Haha...
Maybe £20million raised to go from 2.5million to 10million..... In 8 years!!

This Ettie is definitely living on smack and dreaming BS. What the heck she thinks?

[atinos auntie ettie] 04/3/2014 14:11

This should be seen as good news. The potential objection that the company may be spreading itself too thin is countered by the one-in one-out philosophy, in which as a new project begins to assert itself within a portfolio it will gradually push one out. Most suitably (like for like) that could be one of the old gold projects. Greenland to all intents and purposes is no longer part of the ongoing portfolio. The positive: £80,000 running around money raised at parity and a facility for further tranches to cover exploration once it gets underway, all funded by a private investor who was unsure whether to remain invested or take a loss at the start of this year. Their resolve to both stay the course and commit further funds reflects credibly on management who must have said the right things. An innovative funding approach is appropriate for the current climate and all parties involved are to be commended.

[noirua] 04/3/2014 11:47

The market is really waiting for cash from asset sales rather than tinkering around on spending and hope. If the ann said that El Limon and Greenland assets were sold for $12 million and $3 million has just been banked, then there would be some cheers and even more if they sold their Jupiter Mining interest for 20c a share as well; then we say, "well done Mr Bell" .

As good as he is in this dreadful mining market, he should now take-off his lead boots.

[kezman01] 04/3/2014 11:44

rrrRrrRrr2

Yep I was wrong, it happens.

[johndee] 04/3/2014 10:52

Quite possibly. Always best to take people at face value if no proof otherwise.

[rrrrrrrrr2] 04/3/2014 10:49

Well it appears that the poster who claimed to have multi millions of RRR shares and was a multi millionaire was telling the truth. Yet he was mocked. He is the investor ds on LSE.

[stockonomist] 04/3/2014 10:23

there is one born every minute

[fangorn2] 04/3/2014 10:14

4 March 2014





Red Rock Resources the mining and exploration company with an iron ore project in Greenland, a producing gold mine in Colombia, a gold exploration project in Kenya, and interests in steel feed announces the completion of a private placing with a high net worth investor, as well the establishment of an investment facility focused on a new gold exploration project in Ivory Coast.





Under the terms of the placing 21,052,631 new ordinary shares of 0.1p each (the "Ordinary Shares") are to be issued to Mr Daniel Sklan (the "Investor") at a price of 0.38 of a penny to raise GBP80,000 before expenses (the "Placing"). Following the Placing, Mr. Sklan will own 54,052,631 Ordinary Shares in Red Rock, which will represent 3.32% of the Company's total voting rights. The net proceeds of the Placing will be used for working capital purposes.





Application will be made to the London Stock Exchange for the new Ordinary Shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. Dealings are expected to commence at 8.00 a.m. on or around 10 March 2014. Following the Placing, the Company's total issued ordinary share capital will be 1,630,050,850 ordinary shares.





Separately, the Company has agreed to funding terms with the Investor in which GBP100,000 will be made available to the Company specifically for exploration (the "Investment Amount"). The Investment Amount will be used to support gold exploration activities in the Ivory Coast Gold Project (the "ICGP") which is described further below. The Company can draw down funds in tranches by serving notice to the Investor, with no individual tranche to exceed GBP20,000. The Investor will receive a gross revenue royalty of 0.6% on any production that occurs on the ICGP and will receive from the net proceeds of a sale of ICGP assets an amount equal to a return of the Investment Amount plus 15% of any realisations in excess of the Investment Amount. The Investment Amount is to be available as and when required for exploration efforts in the ICGP.





The ICGP is a new project for Red Rock Resources and will consist primarily of licenses currently being applied for by the Company's locally incorporated affiliates. The Company has conducted an extensive investigation of the mineral prospects of the Ivory Coast with the object of identifying areas of interest. A number of significant target areas for gold mineralisation have been identified in prospective geological settings to date.





Additional announcements on the Company's plans and activities in Ivory Coast will be made in due course.





Red Rock Chairman Andrew Bell comments:





"The 28% fall in the gold price in 2013, and decline in exploration activity in the sector, makes this an opportune time to replenish our project pipeline. Early stage exploration is an area in which we have significant experience, and is also one of the least capital intensive activities on which we can focus our efforts in 2014.





"As we have successfully progressed several of our projects in recent years, our early stage pipeline has become depleted, and some other projects may not require active exploration this year.





"Our initial findings in Ivory Coast have shown the prospectivity of much of the local geology with a number of interesting targets already identified, in what is one of the newest and most prospective gold mining countries, in the centre of the Birimian greenstone belt.





"Further, we welcome the financial support of Daniel Sklan as a demonstration of faith in our exploration prowess, in the work we have done on the project to date and in the desirability and upside potential of Red Rock at current valuation levels. While much of the last year has been spent in extended asset sale negotiations, where we have sought to crystallise gains and lay off risk where possible, this project brings the core focus of exploration back to the forefront of Red Rock's activities."

[fangorn2] 04/3/2014 08:13

I hope our buyer of Colombia or Greenland aren't Russian corporations with Bank accounts in Ukraine. Might explain the ongoing lengthy delay in crystallising the respective sales of such assets!

[dimmerginger] 04/3/2014 07:35

Russian vs Ukraine has could help rrr break the bad news.

[bam bam rubble] 28/2/2014 14:22

On the subject of Greenland spend, when comparing initial RNSs including budgets for the 2 field seasons and the capitalised expense in the accounts, it can be seen they spent more than planned. This line from the annual report therefore looks questionable; "developed Greenland project from early-stage concept to JORC Resource in two field seasons, within budget"

That must be 'within budget, as re-budgeted after going over budget'

[johndee] 28/2/2014 13:55

Thanks for taking that out of context. You needed to put the previous post as well. My post would then look very factual. It is a fact that spending on GL has destroyed this company and it has had the effect of dragging RGM down.