REG - Red Rock Resources - Placement of Shares and Ivory Coast Update <Origin Href="QuoteRef">RRR.L</Origin>

Red Rock ResourcesAnnouncement

29/10/2014 12:58

RNS Number : 0493S
Red Rock Resources plc
18 September 2014
Red Rock Resources Plc
("Red Rock" or the "Company")
Placement of Shares and Ivory Coast Update
18 September 2014
Red Rock Resources plc, the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast is pleased to announce that it has raised 167,325 by way of an issue of 76,056,779 new ordinary shares of 0.1 pence each ("Shares") in the Company with institutional and private investors, at a price of 0.0022 per share (the "Placing"), and an update to its exploration work in Ivory Coast. 
Placement of Shares
Of the total Shares being issued under the Placing, 18,665,628 shares will be Shares arising from the issue and immediate conversion of 18,665,628 Convertible Placing Shares in the Company. The remainder are a direct issue of Shares. 
Mathew D Walker, a Director of Resource Star Limited (ASX:RSL) has subscribed for 63,636,363 shares in the Placing. The proceeds of the Placing will be used towards the development of the Company's gold exploration projects in Ivory Coast and for working capital purposes.
Applicationhas been made to the London Stock Exchange for the new 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 25 September 2014.
Following the Placing, the Company's total issued ordinary share capital will consist of 2,208,008,225 Ordinary Shares with voting rights. No Ordinary Shares are held in treasury. 
The above figure of 2,208,008,225 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 FCA's Disclosure and Transparency Rules.
Ivory Coast Update
Highlights
 Rights to three gold exploration licences acquired in the Ivory Coast
 Additional four pending exploration permits included
 All licences within West Africa's highly prospective Birimian and Tarkwaian Greenstone rocks
 Licenses also contain potential for manganese deposits
Further to the announcement of 4th April 2014, when the Company announced its application for licenses in the Ivory Coast, Red Rock now announces that it has now entered into an agreement whereby the right to acquire the entire issue share capital of Nemex Resources CI SARL and Barclay Resources SARL ("the IC Companies") is assigned to Red Rock for a cash consideration of 140,000. The IC Companies are special purpose vehicles which solely own three exploration licences totalling 1,200km2 and four exploration permits in the Ivory Coast. All licence areas are underlain by West Africa's highly gold prospective Birimian and Tarkwaian Greenstone belts, in a fast growing region for gold exploration and production. 
Ivory Coast contains more than a third of the Birimian geology yet, due to the relative lack of exploration, produces less gold than neighbouring countries. As a country it possesses some of West Africa's best infrastructure yet remains largely underexplored country despite its great mineral potential. 
The licences are all in areas containing encouraging features for gold exploration, including regional faults, neighbouring reported gold occurrences and similar geological settings to the world class, multi-million ounce deposits in Ghana and Burkina Faso. 
FIGURE 1: IVORY COAST LICENCE MAP
http://www.rns-pdf.londonstockexchange.com/rns/0493S_1-2014-9-18.pdf
Dabakala
The Dabakala licence is situated in north-central Ivory Coast and occupies part of the Ouango-Fetini Greenstone belt and associated granites. This licence is along trend of the multi-million ounce Mana mine in Burkina Faso, in similar structurally deformed Birimian and Tarkwaian rocks. Randgold Resources have an exploration licence directly adjacent to the licence. 
The licence also contains added potential for manganese, where in 2013 Nemex identified a 17km ridge of Banded Manganese Formation on the eastern margin of the licence.
Abengourou
The Abengourou licence is situated in eastern Ivory Coast along a 35km long, NNE-trending sheared corridor that has been intruded by magnetic intrusive rocks. 
Abengourou received the greatest amount of exploration work while held by Nemex, where they identified five gold anomalies using soil geochemistry (reported by Nemex on 23rd January 2014). 'Anomaly 5', the most prospective anomaly, contains gold-in-soil values of 100-525 ppb over 4km along a structural trend and follows a line of artisanal workings. Based on these positive results, Nemex applied for a licence extension.
Alepe
The Alepe licence is located in south eastern Ivory Coast proximal to RRR's existing Betti licence application (reported on the 4th April 2014). The licence contains a NE-SW faulted Birimian meta-sedimentary sequence wrapped around a granite intrusion, along trend of Newmont's 17 Moz Ahafo Gold Mine in Ghana.
Company ChairmanAndrew Bell comments:
"With this agreement we acquire rights to granted research licenses in the Ivory Coast, enabling us to start exploration on some areas we had already identified as promising. We have taken this opportunity to strengthen our portfolio in Ivory Coast, which previously consisted of license applications. As we move to sell other assets, the shift in focus to gold exploration in Africa continues." 
For further information, please contact:
Andrew Bell0207 747 9990 or 0776 647 4849  Chairman Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396NOMAD Beaumont Cornish Limited
Jason Robertson 01293 517744  Broker Dowgate Capital Stockbrokers Ltd. 
Rupert Trefgarne 0203 128 8817  Media Relations MHP Communications

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