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Good news.
The application process is normally 90 days from now: hence why RRR is expecting the first three to be approved this week.
A BIG value inflection point.
DYOR
It must be groundhog day again and again.
Another rather desperate "nothing" RNS from Bell. Announcing merely that they have APPLIED for an extra bit of land rather than actually acquired it. Good grief is this what it has come down to? What next, RNS when the window cleaners have been round to clean the office windows??
I can only assume that the placees of the recent confetti issue of 125m shares at 0.8p are underwater and need whatever help they can get to try and get the SP up so they can flip the shares. Just my guess. Mugpunters appear to be few and far between however which is not surprising given the dismal history of this share.
.
Is anyone else really starting to get annoyed by this share? Market just does not like it for some reason. Perhaps it starts with an A and ends with a B. Perhaps it should step aside.
Starting to get interesting now.
I suspect that RRR's 50.1% in RRAL is now worth more than RRR's market capitalisation.
It does seem that there was a previously undisclosed license application. I thought the up to date position was 12 license applications: 12 plus 3 is 15 not 16.
We should get the grant on the first three licenses any day now.
DYOR
You need to make your mind up Tragic: either you believe all the RNSs are complete lies and not to be trusted as previously stated by you or something else... What is it in this case?
Mr Magic, I'm pretty certain Red Rock will need to pay Kansai Mining the $2.5 million + $1 million promissory note.
Back in 2009 Red Rock's original agreement with Kansai Mining was in this RNS:
https://www.investegate.co.uk/red-rock-resources--rrr-/rns/further-re-acquisition/200909171542112560Z/
Red Rock would initially own 15% of Kansai's subsidiary company Mid Migori Mining (which held the gold licenses). Red Rock would then have to pay 100% of all exploration costs and they had 6 years to take it up to a bankable feasibility study. Then RRR would gain an additional 45% in Mid Migori Mining. They never took it up to a bankable feasibility study.
Then when they lost licences in 2015 the 26 June 2015 RNS announced a change in the agreement with Kansai. RNS said:
"Red Rock's farm-in agreement is replaced by arrangements under which any interest in the Migori Gold Project or the other assets of MMM that may be retained by or granted to MMM or Red Rock shall be shared in the ratio 75% to Red Rock and 25% to Kansai. Kansai's interest will be carried up to the point of an Indicated Mineral Resource of 2m oz gold"
I was completely wrong the other day when I thought Kansai would have to contribute 25% towards exploration. I believe Kansai "25% carried interest" just meant that RRR would again pay 100% exploration costs but Kansai would keep 25% until Red Rock had attained a 2 million Oz indicated resource. They had 1.2 million Oz resource and so RRR taking it up to 2 million may never have happened + no doubt cost RRR many many millions in further exploration.
Then in 2018 that 2015 agreement was scrapped in this RNS: https://www.investegate.co.uk/red-rock-resources--rrr-/rns/progress-report---african-exploration-assets/201806150700024789R/
RNS clearly says within 3 months of License renewel RRR would pay Kansai mining $2.5 million cash + a $1 million prom note.
For years RRR have been paying 100% of Kenyan asset exploration costs. So they do need to pay Kansai the money so they finally get rid of them.
Sorry Noirua but where does it say the licenses have to be Mining Licenses before the $2.5m becomes payable?
The RNS of 15th June 2018 states:
"In the event of a renewal or reissue of licenses covering the Assets the Company will within three months make further payments, subject to such renewal or resissue not being on unduly onerous terms, as follows: (1) $2.5m payable in cash, (2) a $1m promissory note payable 15 months after issue, and (3) £500,000 of warrants into Red Rock shares at a price 20% above their average closing price on the three trading days prior to issue. "
The licenses have been renewed/reissued have they not?
What is the process for awarding mining rights in Kenya? What steps must the company and the government follow?
19 August 2020
Https://transparency.org.au/publications/kenya-mining-licence-process-map/
Companies do not apply directly for mining leases but must first apply for a PL, which is then graduated to a mining lease.
It can be seen from the above that Red Rock Resources PLC's Kenyan subsidiary has a PL (Prospecting License). It has not yet been graduated to a mining lease. So the $2.5 million will not become due for some considerable time.
I see in that interview AB now says it's an "effective" two months since they got the Kenyan licenses back. Though August RNS says they were renewed on 2 August. I assume he means when it was all officially signed off?
It doesn't matter if it's two or three months eventually they still need to find big money. Though I suppose they may find a rich partner who pays Kansai the $2.5 million.
It must be Groundhog Day. Zzzzzzzzzzzzzz.
https://twitter.com/RRR_RedRock/status/1323217041214578694?s=20
I don't post over on ADVFN but I see a poster there believes that RRR won't yet have to pay Kansai mining the $2.5 million because the Kenyan government haven't given the correct licenses. However extracts from both RNSes below say "renewal" so renewal means you get your licenses back that you previously held. So obviously RRR are happy because licenses were renewed. So from RNSes it seems pretty clear that RRR will have to pay Kansai mining $2.5 million.
RNS 17 August 2020:
"Further to the announcements of 31 March 2020 and 19 September 2019, the anticipated renewals of Prospecting Licenses PL/2018/0202 and PL/2018/0203 (formerly SPLs 122 and 202) have now been received for a period of three years from 2 August 2020"
RNS 15 June 2018:
"In the event of a renewal or reissue of licenses covering the Assets the Company will within three months make further payments, subject to such renewal or resissue not being on unduly onerous terms, as follows:
(1) $2.5m payable in cash,
(2) a $1m promissory note payable 15 months after issue"
Another pointless post but last post should have said:
"At present its resource 1.2 million"
In previous post lse's built in spellchecker changed "its" to "it's"
RNS extracts below are from the 2015 agreement with Kansai mining. Then RNS extracts are when they changed to a new agreement in 2018.
I'm certainly no expert in these matters but in the 2015 agreement it looked like Red Rock would have had to pay 75% of exploration costs until they had got a 2 million ounce 'indicated' resource. At present it's resource 1.2 million. So I would assume Red Rock decided instead of them paying 75% of exploration costs until they got a 2 million indicated resource it would be much cheaper to pay Kansai mining off and then look for a new partner.
I guess for Red Rock they can't get a new partner until they pay Kansai mining off.
Here are extracts from 26 June 2015 RNS:
"Red Rock has now executed an agreement with Kansai Mining Corporation Ltd ("Kansai"), the other shareholder in MMM, pursuant to which Red Rock's farm-in agreement is replaced by arrangements under which any interest in the Migori Gold Project or the other assets of MMM that may be retained by or granted to MMM or Red Rock shall be shared in the ratio 75% to Red Rock and 25% to Kansai. Kansai's interest will be carried up to the point of an Indicated Mineral Resource of 2m oz gold. Red Rock is to have full management rights and the conduct of legal proceedings on behalf of both MMM and itself. Red Rock at the same time surrenders all its share interest in Kansai and pays £25,000 to Kansai, with a further £25,000 due upon recovery of the Migori Gold Project."
Extract from 15 June 2018 RNS:
"Red Rock also announces, further to its announcement of 26 June 2015, that a revision to its agreement with Kansai Mining Corporation ("Kansai") of 20 June 2015 ("2015 Agreement") was executed on 11 June 2018 ("2018 Agreement"). The effect of the revision is that Kansai exchanges its 25% carried interest in the mineral assets of Mid Migori Mining ("MMM" and "Assets") under the 2015 Agreement for a $50,000 payment, leaving Red Rock with a 100% interest. In the event of a renewal or reissue of licenses covering the Assets the Company will within three months make further payments, subject to such renewal or resissue not being on unduly onerous terms, as follows:
(1) $2.5m payable in cash,
(2) a $1m promissory note payable 15 months after issue, and
(3) £500,000 of warrants into Red Rock shares at a price 20% above their average closing price on the three trading days prior to issue."
So AB reckons that the first three RRAL gold licenses should be issued next week. Big value inflection point.
Yyyyaaawwwwnnnnn.
https://twitter.com/RRR_RedRock/status/1322157556693929984?s=20
This is the link to Bell's LSE account: https://www.lse.co.uk/profiles/andrewrbell/
His top post was an answer to my question when i gave him a link to the 2018 RNS and asked him if the $2.5 million payment still needed to be paid to Kansai mining.
MrMagic, you've seen Bell's response on here the other month when he confirmed that the $2.5 million payment (mentioned in the 2018 RNS) would still need to be paid. That 2018 RNS said $2.5 million cash would need to be paid to Kansai mining within 3 months of license renewel. Red Rocks RNS from a few months ago said licenses were renewed on 2 August.
So how Red Rock will find that money I don't know. I also don't know if Red Rock will the pay money on time.
Didn't Zumore suggest that the $2.5m payment for the Kenya project was due 2nd November? That's this Monday isn't it?
DYOR
Zzzzzzzzzzzzzzzzzzzzzzzzzzzzzz.
It's a first for me: an RNS providing updates on base camp decor.
https://twitter.com/StirlingBridgeR/status/1321739360862195712?s=19