RCS - Red Rock Resources - DRC and Australia Gold Asset Update

Red Rock ResourcesAnnouncement

14/02/2024 12:30

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RNS Number : 1453D  Red Rock Resources plc  14 February 2024

Red Rock Resources PLC

("Red Rock" or the "Company")

DRC and Australia Gold Asset Update

 

14 February 2024

 

Red Rock Resources Plc, (AIM:RRR) ("Red Rock" or "the Company"), is a natural
resource development company with interests in gold, base metals, battery
metals, and hydrocarbons principally in Africa and Australia.

This release is an update in relation to (a) the Company's arbitration in the
Democratic Republic of Congo ("DRC") with respect to the US$10m claim the
Company is pursuing in country for its interest in the VUP copper-cobalt joint
venture, (b) the Company's ongoing review of its Australian gold operations,
and (c) due diligence in relation to a possible hydrocarbon opportunity in
Central America.

DRC

On 5(th) February 2024 Red Rock noted that:

(1)  The Company's 100% owned subsidiary in the DRC had, obtained in 2022, an
executory judgment for $2.5m (being 50.1% of $5m paid to local partner by a
buyer), and the result of the Arbitration hearings held in Kinshasa in 2022 in
order to obtain $7.5m (being 50.1% of the $15m still to be paid by the buyer)
was pending;

(2)  A draft of the arbitration award had been received by the Company and
awaited finalisation and release;

(3)  The hiatus caused by the Presidential and Parliamentary elections in the
DRC was over, and the finalisation of the arbitration award and payment was
resuming; and

(4)  A further updates would be provided as soon as possible.

We have been in constant communication with our country representative, our
lawyer, and our local partner and matters to resolve the above are
progressing. We hope for a further update by the end of this week or early
next week.

Australia

Our Australian subsidiary, Red Rock Australasia Pty Ltd ("RRAL") has continued
to work on our two key local gold projects; (a) the Berringa Mine tenements
where the Company has reported an exploration target ranging between 1.275
millions ounces of gold and 171,000 ounces with a grade range of 5.5 grams per
tonne of gold (g/t Au) and 14.2 g/t Au, and (b) the Ajax Mine tenements with a
preferred exploration target of 587,000 tonnes at an estimated grade of 13.1
g/t Au. Further details on these assets are available on the Company's website
with a new presentation now uploaded.

The Company continues to discuss with its partner the best structure for going
forward with these exciting assets, noting the elevated gold price in
Australian dollar terms in excess of AUD3,000 per ounce. Sourcing capital to
drill these tenements will be a priority in 2024 to bring one of these gold
targets into JORC-compliant Resource status and listing RRAL on the ASX is
also being considered now to realise value for shareholders and provide the
funds necessary to further advance the projects.

Central America

A team from the Company has been conducting due diligence on the private offer
of some promising hydrocarbon assets. An announcement will be made if the
matter progresses.

Chairman Andrew Bell comments:

"Our representative in the DRC has now had a number of meetings with advisors
from the other side and we are informed by them that since both sets of
principals have wanted the matter finished for some time, the obstacles to
closing the settlement are being removed from the equation.

We hope to progress the matter further this week when our local partner
returns to Kinshasa.

In Australia, the new presentation online for the first time gives a proper
prominence to the two key projects down there, one of which is capable of
potentially being put on a fast track towards production given a structure
which enables it to be given a proper priority. We are now once again looking
at the possibilities of listing this investment on the ASX.

In Central America, we are looking at assets which have the potential to
restore growth to our nine year old oil and gas function. We are always ready
to look at highly prospective projects, especially ones which are held out as
potentially cash flow-generative, and conduct due diligence on many prospects
which we never announced. This one was worth marking as standing out from the
crowd, but also because some expense will be incurred in the due diligence
exercise and should it look like progressing we will make an announcement in
due time."

There is no certainty that any matters will be concluded as we hope and any
actual developments will be notified in accordance with the AIM Rules at the
appropriate time.

 

For further information, please contact:

Andrew Bell 0207 747
9990
Chairman Red Rock Resources Plc

Bob Roberts 0203
8696081
  Broker Clear Capital Corporate Broking

 

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