Red Rock Resources plc Issue of Shares, Warrants, update on Kenya and TVR (6491F)

TIDMRRR

RNS Number : 6491F

Red Rock Resources plc

18 November 2020

Red Rock Resources PLC

("Red Rock" or the "Company")

Issue of Shares and warrants

Kenya update

18 November 2020

Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and other minerals, reported on 17 August 2020 the renewal of its licenses relating to a gold project in Kenya (the "Project"). As originally announced on 15 June 2018, as part of a transaction whereby Red Rock acquired the remaining beneficial interest in the Project from a subsidiary of Kansai Mining Corporation Limited ("Kansai") the renewal of the licenses triggers the following actions by Red Rock:

-- Payment of GBP25,000 to Kansai by the issue of 3,571,429 Red Rock shares ("Shares") at a price of 0.7p a Share;

   --    Issue of a $1,000,000 Promissory Note payable in fifteen months to Kansai; 

-- Grant to Kansai of GBP500,000 of warrants exercisable for 30 months into Shares at 0.7p a Share.

A further announcement will be made in relation to future obligations to Kansai.

In addition, Red Rock has issued to Riverfort Global Opportunities PCC Limited and YA II PN Limited a total of 16,000,000 thirty six month warrants, exercisable as to half at a price of 1.6 pence a Share, and as to half at a price of 2.4 pence a Share, in consideration of the extension of existing facilities and grant of a six month repayment holiday on drawn amounts.

Kenya Update

The Company has appointed CSA Global (UK) Limited to provide an updated Mineral Resource report for the Project. The purpose of this work is to bring the historic 1.2m oz mineral resource estimate reported by the Company in 2013 according to the JORC 2004 code into compliance with the JORC 2012 code, enabling it to be reported as a code-compliant Mineral Resource Estimate in accordance with an AIM Standard.

Red Rock Chairman Andrew Bell comments : "Obtaining a 100% interest in 2018 was an important step forward in adding value to the Project and enables us now to deal in respect of the Project with a free hand. Red Rock has come a very long way since its first modest involvement in Kenya, which was on a farm-in basis, has overcome all vicissitudes, and now controls what we believe to be a significant and potentially expandable deposit.

Our consultants will immediately begin the work to enable us to declare a compliant resource which we will notify as soon as it is completed.

This is an important step in our planning process for the next phases of exploration which will be aiming to build on the existing resource ounces and grade".

Further Information

Application has been made to the London Stock Exchange for Admission of the Shares, which will rank pari passu with the Company's existing issued Ordinary Shares. Dealings are expected to commence at 8.00 a.m. on or around 24 November 2020.

Total Voting Rights (TVR)

Following the issue of the 3,571,429 new Ordinary Shares, the issued share capital of the Company consists of 825,338,881 ordinary shares of 0.01p each with voting rights. No Ordinary Shares are held in Treasury.

The above figure of 825,338,881 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the Disclosure and Transparency Rules.

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

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

Mark Treharne 0203 700 2500 Broker Pello Capital Limited

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IOEGPGQUGUPUPGM

(END) Dow Jones Newswires

November 18, 2020 02:00 ET (07:00 GMT)