REG - Red Rock Resources - Update of major interests

Red Rock ResourcesAnnouncement

07/10/2024 07:00

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RNS Number : 0810H  Red Rock Resources plc  07 October 2024

Red Rock Resources PLC

("Red Rock" or the "Company")

Update of Major Interests

 

7 October 2024

 

Red Rock Resources Plc is a natural resource development company with
interests in gold and base metals, principally in Africa and Australia.

The following is an update of key points only in relation to the Company's
assets and current developments. For a more comprehensive summary of the
Company's assets, the Company's website may be referred to.

Highlights:

o  Red Rock expects the most important near-term developments to be:

o  Gold production in Burkina Faso

o  Release of arbitration result in the Democratic Republic of Congo ("DRC")

o  Further updates on New Ballarat Gold Corporation

Comment: Red Rock CEO Andrew Bell states: "Our confidence in the gold price
has meant that our strategy has been to secure and not to let go of good gold
ground. We now have a diverse portfolio of gold interests with the potential -
subject to all the usual caveats - to go into mined production.  We have had
to wait for the result of our arbitration in the DRC but are now told we are
about to receive an invitation to a concluding meeting. We are also invited to
the DRC for meetings with Governmental parties on another matter and have been
approached by a European private sector party about partnership in their
project in the DRC which at first glance looks highly prospective.

On the basis that we receive and repatriate the arbitration award, we do not
exclude the possibility of looking at projects presented to us as a result of
our enhanced profile in the DRC. Any such opportunities would have to undergo
substantial due diligence before consideration. It is worth noting that in the
event of a successful resolution in the DRC, which we anticipate, our position
there will be a strong one and this appears to be gaining some recognition.

We have pursued a resolution through multiple channels, and it is only
recently that a new and direct channel opened at the highest levels has given
new impetus to this long-drawn out process, where  decisions may have been
taken in principle but they have not been carried through. A settlement will
have several important effects, including a more rapid advance of activity on
other fronts, where we have been held back by a lack of the expected capital,
as well as dealing with accumulated liabilities

We continue to move towards gold production in Burkina Faso. The consultants
with which we have been working  have to pass through time-consuming
regulatory hurdles in India in order to bring Indian staff to site, and so to
bypass this uncertainty we have entered into an agreement with an experienced
South African-Congolese mine management team operating mines in the DRC for a
carefully costed 'quick start' operation which will then be replicated in Cote
d'Ivoire and we hope will lead to first gold sales in both jurisdictions
before the end of 2024.

Positive developments are occurring elsewhere in our operations.

We will continue to update the market."

 PROJECT                                                              2024 UPDATE

 Former Copper-Cobalt Joint Venture, DRC                              The Company has been notified that it is about to receive an invitation to a

                                                                    final session of the arbitration leading to release of the award. Red Rock
                                                                      remains open to and is discussing the possibility of agreeing an earlier

                                                                    outcome direct with the other party by an Acte Transactionnel.

                                                                      As of today there has been no recovery by Red Rock and there is no certainty
                                                                      that there will be until documents are executed and released. Also, Red Rock
                                                                      will seek further advice on remedies that may be available through further
                                                                      actions, including in other jurisdictions.

 Other DRC                                                            The Company has received an invitation to go to the DRC for discussions with a

                                                                    Governmental agency advancing a major and potentially cash-generative project.

                                                                      The Company has also received an offer of co-operation on significant projects
                                                                      from a non-Congolese party.

                                                                      Advancing any such projects would require prior settlement of the matter under
                                                                      arbitration, payment and repatriation of any award, and technical and legal
                                                                      due diligence. That such offers and invitations are being extended might on
                                                                      one view however be considered an indication of the Company's local standing
                                                                      and expectations that it will exit from the arbitration process shortly.

 New Ballarat Gold Corporation Plc                                    The payment of £250,000  due under para 5(c) of the Heads of Terms as

                                                                    previously announced ("Terms") has not been made by Red Rock by 18 September
                                                                      2024 as required, and therefore the provisions of para 6(b)(3) of the Terms

                                                                    apply, by which a 60 day cure period is allowed for the payment to be made, in
 Gold: Victoria, Australia                                            default of which the vendor may reacquire its sold interest for $1 plus a Note

                                                                    for any cash consideration paid.

 100% interest

                                                                    A number of major shareholders have indicated their support for the increase
                                                                      in capital necessary to satisfy its purchase commitments under the Terms
                                                                      (should funds from a settlement or award in the DRC not be received in a
                                                                      timely manner) and subject to this, Red Rock's intention is to place equity
                                                                      sufficient to enable it to fulfil the payment within the cure period.

                                                                      The Company has been engaging with brokers and listed companies in Australia
                                                                      to discuss possibilities for achieving a listing for the assets but has no
                                                                      binding commitments to report at this stage.

 Faso Minerals Ltd                                                    The Company has signed a consultancy agreement with Greypoint International

                                                                    ("Greypoint"), a company incorporated in the Democratic Republic of Congo,
                                                                      represented by Michael Billings acting as Project Director to provide project

                                                                    management services as required for the Company's alluvial gold projects in
 Gold: Boromo and Banfora greenstone belts, SW Burkina Faso           Burkina Faso and Ivory Coast.

 Subsidiary                                                           Greypoint responsibilities will include:

                                                                      ·      Planning and overseeing all stages of the alluvial gold mining
                                                                      process.

                                                                      ·      Coordination with local teams, subcontractors, and suppliers.

                                                                      ·      Ensuring compliance with local laws and regulations.

                                                                      ·      Reporting regularly on the progress, budget, and safety
                                                                      performance of the Projects.

                                                                      ·      Advising on operational improvements and risk mitigation
                                                                      strategies.

                                                                      ·      Managing project timelines, resources, and workforce allocation.

                                                                      In an initial 16 day period, the Consultant will:

                                                                      ·    Procure equipment, negotiate with suppliers and manage logistics.

                                                                      ·    Engage the Burkina Faso Embassy through the South African Chamber of
                                                                      Commerce to facilitate the logistical movement of the equipment, and open
                                                                      diplomatic and economic communication channels in Burkina Faso.

                                                                      ·    Engage the South African Embassy and the British Consulate in Burkina
                                                                      Faso to create a presence and assist and facilitate the effective
                                                                      communication and functioning within the Burkina Faso mining space.

                                                                      ·    Liaise with Red Rock representatives on permitting and licence issues

                                                                      The Consultant will then mobilise plant to site and start operations,
                                                                      including a continuous programme of geological sampling and testing, the
                                                                      production of dore bars, and export.

                                                                      The consultant referred to in the announcement of 27(th) February 2024, whose
                                                                      brief report was announced on 29(th) April 2024, has been unable to provide
                                                                      equipment on site according to the original and revised timetables, and has
                                                                      continuing delays resulting principally from the length, cost and complexity
                                                                      of the bureaucratic procedures required for permitting the Indian workforce
                                                                      intended to operate the consultant's concentrators and equipment on site.

                                                                      To bring the assets into immediate scaleable production and ensure activity
                                                                      sufficient to ensure retention of the licences the Company has engaged
                                                                      Greypoint who are specialised in operations of this type.

                                                                      The possibility remains of a larger scale operation involving the original
                                                                      consultant at a later date, but in the short term the Company took the swift
                                                                      action necessary to ensure delivery of the key objectives.

 Mikei Gold Project                                                   Red Rock has engaged lawyers to ensure the integrity of the process of licence

                                                                    renewal, which continues.

 Western Kenya

 Gold: 723,000 oz Mineral Resource Estimate at 1.49 g/t (JORC 2012)

 100% economic interest

 LacGold Minerals Ltd                                                 Red Rock has identified alluvial potential within its granted licences.

 Gold: greenstone belts in Côte d'Ivoire                              Greypoint personnel are familiar with and have operated in Côte d'Ivoire and

                                                                    after taking initial steps to set up the gold operation in Burkina Faso (see
                                                                      above) will follow the same course and timelines on the Company's licences in

                                                                    Côte d'Ivoire
 Subsidiary

 Elephant Oil Corporation                                             Plans for an early listing have been dropped, but RRR expects finance to be

                                                                    secured which would mean that EOC will be capitalised to build value from the
                                                                      next phases of onshore exploration and if successful exit opportunities may
                                                                      still be available.

 Zimbabwe Lithium                                                     Although there are signs of improvement in the lithium market, it is too early

                                                                    to recommence operations and therefore no production is expected until
                                                                      otherwise advised.

 Colombian Gold Royalty                                               Soma Gold Corporation, the owner of the El Limon mine, has announced the

                                                                    intention to restart gold processing in this quarter.

 

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

Bob Roberts 0203
8696081
  Broker Clear Capital Corporate Broking

 
 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

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