Red Rock Resources Share Discussion Threads

[silverspoon2009] 27/2/2023 07:59

Those numbers look impressive if achieved, even if you halve them to $600k free cash a month would generate enough income to cover PLC costs and expand other projects.

I have recently bought a few million shares as a punt, let's see, the news-flow here has been slow but this could change.

[kemche] 26/2/2023 18:57

This will be huge.

Gla lthers!

[mininglamp] 26/2/2023 17:29

2/2


Imminent production of 200 tonnes of Lithium concentrate a day will bring revenues of circa $1.5m a month with costs of circa $300k equating to free cash of $1.2m to Red Rock.

This is a significant development, no wonder buyers have been coming in for the shares at current levels, if these numbers are attained the recent facility will not be utilised fully and borrowings paid back.



For clarity I have copied screen shots of the numbers discussed

[mininglamp] 26/2/2023 17:16

1/2


I have been evaluating a little known about 'chat' that took place just before the Christmas break with Mr Bell and a geologist involved with the lithium project in Zimbabwe, it was placed on You Tube.


Red Rock is anything but a retail investor favourite but I think that this may be about to change if the company does what it says in Zimbabwe, apparently the Nomad would not allow Mr Bell to put these numbers in a RNS so he delivered them via the aforementioned discussion.

No-one has posted this before, IF they do as they suggest then will be transformational for a £3.5m company.

[noirua] 26/2/2023 15:47

It is mentioned indirectly at the end of post #13627. Details in the other place show it as a trade on Thursday 23 February, a buy, that pushed the price up on Friday. Whether it is just an individual's purchase or not appears only guesswork. If you know more by any chance I'm sure everyone would be interested. I have contacted 3 others I know who hold shares in Red Rock and it's not them. Best for us to look out for a follow-up, thanks.

There are four companies that might be interested: The chance they would tell me this as an investor is absolutely zero - I know a little bit more than most though it may lead to nothing anyway. Red Rock's deal with Diversified isn't good by any means though they have some get outs which could be useful.

Like Power Metal, Red Rock is eating cash on drilling events. They can't seem to lock their wallets. The market in microcap explorers is dreadfull unless they have found Lithium, graphite or good grade thermal coal - just drilling for it in today's market is worth nothing or worse.

[valuestock] 26/2/2023 15:04

I am a bit surprised no one has mentioned this purchase from Friday printed after the close. 9,587,126 @ 0.365p

[noirua] 26/2/2023 09:58

The Company will receive an additional benefit in a rising market in that, if an issuance of shares to the subscriber would result in the effective discount to the average of the five-day market prices of the Company's shares being in excess of 25%, the Subscription Price will be increased by half of such excess.
15 December 2022 - Fund Raising

At 0.295p, an average over the chosen 5 days, the 0.2p price would have been 32.2% lower therefore the 0.095p difference would have been halved to 0.0475p making 0.2475 rounded up to 0.25p.

-----

Change to 15 December RNS is as follows:
It has been agreed that the subscriber may elect, when requesting an issue of further shares, for the same Purchase Price to apply in respect of up to $274,000 of the Initial Subscription amount.
24 February 2023 - Share Issuance -
[ meaning a further 81,923,000 shares (exchange rate $1.206 to £1) can be issued at a future date at 0.25p.]
Red Rock have lobbed a further $78,000 in Diversified's direction that may also become shares.
Diversified is a financial company built to make profits from financial deals not to hold a portfolio of shares. Therefore they will start selling at some stage which is part of the hidden agreement (Secret) between Red Rock and Diversified.
At what stage they will sell is unknown though they may well not wait until all the $1.5 million is paid to Red Rock.
This is a bit of a 'nelly dilemma' for shareholders with ELEP and DRC on the horizon - both on the cliff top looking over events.

[kemche] 25/2/2023 12:21

"The 15 September RNS was built to mislead at first whether deliberately or not."

Shocking!

[noirua] 25/2/2023 12:19

IF I have it right Diversified may give $1,500,000 to Red Rock and will be able to invest £1,343,196 ($1.206 to £1 at present) into Red Rock shares probably at 0.25p.
If it happened they would hold 573,313,000 shares (30% to 32%) + more for costs paid to them maybe.

The above is roughly right as exchange rates are beating about the bush these days.

Due to all these goings on I've narrowed my target for Red Rock to 0.8p - 1p. If the gold price surprisingly rebounds to $2,500 from $1810 and the oil price hits $120 a barrel the ball game changes and the target doubles or trebles - as always your call.
Part of the goings-on is Matt Lofgran frigging about over the ELEP market quote on the Nasdaq. An allover the place situation in DRC. Gold falling sharply in value.

Updated 16:45.

[noirua] 25/2/2023 12:09

As Diversified has not yet requested 41,037,025 shares they remain under the 3% limit. It is odd that shares are paid for by the sum given to Red Rock but not issued to them immediately.

The 15 September RNS was built to mislead at first whether deliberately or not: The rise in share price over 0.4p on the day showed a few were.

[kemche] 25/2/2023 11:01

But does that not take Diversified over the declarable 3%? Most odd!

[noirua] 25/2/2023 10:36

Hi #kemche, #sc1per's post 13626 says the Red Rock shares for the original $500,000 loan are only now being requested by Diversified.
I think the change in the agreement was the reason for the price being 0.25p and not 0.2p. RRR pays $78,000 for this, I believe.

sclper 24 Feb '23 - 17:37 - 13626 of 13629

A key point in the funding agreement is 'Each subscription under the Agreement will be made by way of the subscriber prepaying for Shares to be issued at the subscriber's request'.

The subscriber didn't 'request' any shares to be issued in the first month when the price would have been 0.7p.

[kemche] 25/2/2023 10:30

If Diversified are holding circa 14% of the shares should there not be a TR1 lodged?

[noirua] 24/2/2023 22:49

Thanks #sciper you make that clearer. The actual price paid appears to be part of the change Red Rock refers to. Not a very good cash raise when compared to Power Metal's. As Red Rock say they have the cash already.

-----

The near 10 million share trade at 0.365p is from Thursday. Probably why Red Rock started off with an early run-up. How the market takes the 0.25p price Diversified are being given shares at will play out next week. So far it is not encouraging though the big trade may be looked at fondly from the bulls' point of view.

[sclper] 24/2/2023 17:37

A key point in the funding agreement is 'Each subscription under the Agreement will be made by way of the subscriber prepaying for Shares to be issued at the subscriber's request'. The subscriber didn't 'request' any shares to be issued in the first month when the price would have been 0.7p.

[kemche] 24/2/2023 14:33

"Red Rock who appears to have allowed their opponents to play a blinder."

Which is a very hard task let me tell you.

[noirua] 24/2/2023 14:26

The Diversified New Agreement seems to have set a floor price at 0.25p - less in fact as they get extra cash back. So the $500,000 at 0.7p seems to have been thrown out of the window. So it looks as if Diversified actually pays about 0.235p all in all. This is subject to clarification from Red Rock who appears to have allowed their opponents to play a blinder.

[kemche] 24/2/2023 13:58

All the big round buys must be Diversified averaging down.

[kemche] 24/2/2023 13:57

All the sells are buys by the entities.

I have been patient for 18 imminent years so what is 18 more in the greater scheme of things? In those 18 years I have seen plenty of imminent things.

Whilst some may have the luxury of patience can the same be said for the rotund octogenarian? The mortal coil has but limited patience.

[noirua] 24/2/2023 13:39

Quite a lot of selling is concerning but the sight of shares sold at 0.25p and they get cash back of $78,000 is annoying. Anyway hold on for better things down the line though it may be months rather than days that some are expecting. Maybe that will give me time to take profits on an Aussie share and build my RRR holding a bit later on. Patience is a virtue.

[kemche] 24/2/2023 13:24

The money from DRC must be imminent.
ELEP whoosh!

It's all about the imminancy of Zimbabwe now which will another success for Bell.

[noirua] 24/2/2023 13:12

It is a bit difficult to say now as Red Rock becomes a push-and-pull share. This Diversified agreement looks like a desperate-for-cash move to get them to start coughing up. I hope the lock-in agreement is still in place or trouble ahead.
On the other side are Elephant Oil and CEO Matt Lofgram who seems to be firing blanks from his NASDAQ starter pistol.
Another is the DRC outcome.
I guess many locked in some profits this morning having bought at under 0.3p and why not indeed.

[kemche] 24/2/2023 10:37

Now all the large "buys" makes sense.

T'was ever thus.

GLA LTHers!

[kemche] 24/2/2023 10:35

So that was the "rumour"!

Makes sense.

Whoosh!