REG - Red Rock Resources - Jupiter Mines: appointment of financial adviser <Origin Href="QuoteRef">RRR.L</Origin>

Red Rock ResourcesAnnouncement

14/03/2017 12:15

RNS Number : 4213Z
Red Rock Resources plc
14 March 2017
Red Rock Resources plc
("Red Rock" or the "Company")
Jupiter Mines: Appointment of Financial Advisor
14 March 2017
Further to the announcement of 13th March 2017, Red Rock announces that Jupiter Mines Ltd, an Australian unlisted public company in which Red Rock owns 25,684,913 shares, has made the following announcement:
 "JUPITER APPOINTS FINANCIAL ADVISOR
Jupiter Mines Limited ("Jupiter" or "Company") and its partner Main Street 774 (Pty)
Limited, are pleased to announce the launch of the process to investigate strategic options to realise shareholder value from their flagship Tshipi manganese mine. As stated in the Jupiter announcement of 23 January 2017, this may result in a listing in 2017. Bank of America Merrill Lynch have been appointed as advisors to progress these options.
The Company has also just announced the successful close of its US$55 million buy-back, thereby effectively returning to shareholders over half their original capital investment. Given reasonable manganese prices, shareholders should receive the remaining half of their original capital investment in the near future."
Notes
The manganese mineowned byJupiter's 49.9% owned associateTshipi  Ntle Manganese Mining Proprietary Ltd ("Tshipi") is in the Kalahari Manganese Basin of South Africa, thought to contain some 80% of the world's metallurgical grade manganese. Tshipi is one of the five largest manganese operations globally, and one of the three largest in South Africa.
The Tshipi mine has been in operation as an open pit mine over three full years. In these years, to February 2016, the average manganese price for the 37% ore that Tshipi is producing has been US$3.06 per DMTU (Dry Metric Tonne Unit). The manganese price has been in decline over the period, reaching lows of US$1.32 per DMTU towards the end of the last financial year. There has been a recovery since, with the price trading for much of this year between US$2 and US$3 per DMTU and recently at levels between US$2.35 and over US$6 per DMTU. 
The Tshipi mine is in the lowest cost quartile of global manganese producers. Classified Resources of the Bottom Cut, which is currently being mined, were stated to be 163m tons at 37.1% in the Independent Technical Report announced by Jupiter on 6 July 2010. It was noted that down dip from the open pit design, the Resource was open and there was scope for significant increase in the Classified Resource base. Resources in the Upper Cut, currently mainly being stockpiled, were stated to be 145m tons at 31.75%.
Production capacity was 2.4m tons per annum and is increasing to 3.6m tons per annum. Production in the three years to 28 February 2016 was 0.94m t, 2.11m t and 1.54m t respectively, with the target for the current year initially set at just under 2m t but now expected to be comfortably exceeded. 
After implementation of the equal access buy-back announced yesterday, Red Rock holds 25,684,913 shares in Jupiter, equivalent to approximately 1.2% of the issued share capital. The carrying cost of these shares in the books of Red Rock at the date of the last audited accounts, 30 June 2016, was 1,394,131.
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
Scott Kaintz 0207 747 9990 Director Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396NOMAD Beaumont Cornish Limited
Jason Robertson 0129 351 7744Broker Dowgate Capital Stockbrokers Ltd 

This information is provided by RNS
The company news service from the London Stock Exchange
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