REG - Red Rock Resources - Issue of convertible notes and warrants

Red Rock ResourcesAnnouncement

25/07/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220725:nRSY5293Ta&default-theme=true

RNS Number : 5293T  Red Rock Resources plc  25 July 2022

Red Rock Resources PLC

("Red Rock" or the "Company")

Issue of Convertible Notes and Warrants

 

25 July 2022

Red Rock Resources Plc, the natural resource development company with
interests gold and base metals, principally in Africa and Australia, announces
that it has issued £623,000 of Convertible Notes ("Notes") with accompanying
Warrants ("Warrants") to high net worth investors.

Red Rock Chairman Andrew Bell states "As the Company pursues the first part of
its compensation claims in the Congo, where it has obtained court judgments in
its favour and awaits an imminent arbitration ruling, it continues its
strategic restructuring for the post-compensation era. The Australian joint
venture is being developed into an entirely independent company suitable for
listing, and the group is structuring its African operating assets around the
gold and battery metals themes, and in such a way that each unit can be sold,
developed, or listed separately. Financial assets will consist of working
capital supporting the operating assets, investment assets held for sale, and
long term royalty and strategic holdings.

This balanced approach means that even though near-term positive financial
developments may be anticipated, we continue to manage proactively our short
term working capital and our medium term liabilities. Subscribers to this
issue of Notes, which was carried out during weak markets at a premium to the
market price, included both holders of debt and long term equity investors,
and the arrangement fee of 6% was paid in Notes. This pricing reflects the
confidence of our investors in Red Rock's prospects."

Further Information

£367,000 of subscription for the Notes was new subscriptions, and £256,000
was conversion of debt facilities. The Notes are being issued at par and are
convertible into Ordinary Shares of £0.0001 in Red Rock ("Shares") at a price
of 0.6 pence per Share. Each Note has a denomination of £1,000 and is thus
convertible into 166,666 new Shares in the Company. Conversion may take place
at any time within 12 months of issue date.

Each Note holder also receives 83,333 Warrants for each Note subscribed. Each
Warrant entitles the holder to subscribe for Shares at any time up to thirty
months from the date of issue at a price of 0.8 pence per Share.

The interest rate on the Notes is 12% per annum, payable on maturity.

The maximum number of new Shares that could fall to be issued upon exercise of
all of the Notes is 103,833,333 and the maximum number of new Shares that
could fall to be issued upon exercise of all of the Warrants (for an
additional consideration to the Company of £441,480) is 55,185,000.

General Meeting

A general meeting will be called during August 2022 to approve the issue of up
to 159,018,333 new Shares pursuant to any conversion of the Notes or exercise
of the Warrants.

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

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

Jason Robertson 0207 374
2212
  Broker First Equity 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
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCMZGZNMDVGZZZ