REG - Red Rock Resources - Update

Red Rock ResourcesAnnouncement

30/01/2019 07:05

RNS Number : 4684O
Red Rock Resources plc
30 January 2019
 


Red Rock Resources PLC
("Red Rock" or the "Company")
Update
 
30 January 2019
Red Rock Resources Plc, the natural resource development company with interests in gold, manganese and minerals, announces an update on developments.
Democratic Republic of Congo
Further to the announcement of 19 December 2018, the completion and timely submission of the report required to be submitted to Gécamines by the end of the year in relation to the Copper/Cobalt Joint Venture was the first priority for the December year-end period.
The period from the Presidential and other elections, held almost as scheduled at the end of the year, until the announcement of results on 20th January saw a suspension of the internet and SMS, the reason cited being the need to avoid rumour and chaos. Having received  advice not to visit until after the results because of the high possibility of civil disorder, and given the lack of communications, the Company was able to make little further progress over the last month, but will now prepare for activities scheduled to start after the rainy season ends in March.
Kenya
Further to the announcement of 22 October 2018 announcing the settlement of legal proceedings, the Company continues vigorously to pursue the remaining steps for full restoration of rights over its gold licenses, and will announce further developments as they occur.
African Battery Metals plc (AIM:ABM)("ABM")
The Company is pleased to report that it has been able to assist with the refinancing and planned resumption of trading at ABM, a holder of exploration licenses in Ivory Coast, Cameroon, and Congo. ABM made a loss of £3.945m in the year to 30 September 2017 and was suspended from trading on 11 December 2018 pending clarification of its financial provision.
Red Rock sees common interests to be developed, and possible synergies to be unlocked, through a relationship with ABM, and welcomes the opportunity to broaden its network of contacts in the promising and strategic African mineral and battery metal markets.
Should ABM shareholders approve the refinance at their general meeting on 15 February 2019, and trading resume in ABM's securities on AIM, Red Rock will receive 20,000,000 ABM shares at a price of 0.5p per ABM share and a total cost of £100,000, and will receive 5,000,000 fee shares for its services in connection with the refinancing proposals, giving it a 6.89% holding in the capital of ABM post-transaction.
Andrew Bell, a director of the Company, will participate in the £1,000,000 conditional placing announced by ABM and will upon fulfilment of all conditions including resumption of trading join the board of ABM as Chairman. Any remuneration received by him in relation to this role will be published on the ABM website and will be performance-based.
Further details may be found on the website of ABM at www.abmplc.com 
Red Rock Chairman Andrew Bell comments: "It is a great relief and an important development that the Presidency of the DRC is going to pass relatively seamlessly to a candidate of the opposition, and a sign of the growing political maturity of the country and its neighbours. We have suffered no disruption in our work and currently expect none. We are now quite positive on the prospects for our main Congolese licenses, and so will have to decide where to focus our efforts and whether to seek joint venture partners to progress some of them.
In Kenya, the holiday season slowed progress, which now shows signs of speeding up and reaching the result we had hoped for by the end of last year. Bringing this matter to a conclusion and regaining our 1.2m oz gold Resource there, with all its exploration and expansion potential, is our most immediate priority.
Working with Roger Murphy, who we greatly respect, to restructure and we hope relaunch ABM has been a privilege and a pleasure, and our ground level entry would give us exposure at reasonable cost to ABM's interesting portfolio of assets in a company that would be debt-free and with funding in place for the next phase of exploration."   
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 3396        NOMAD Beaumont Cornish Limited
Jason Robertson 0207 374 2212                                                Broker First Equity Limited                                                           
 




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