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I see our friend Zumore has been making stuff up again. If he is so clued up, ask him what was the order granted in the VUP v Gecamines/Glencore hearing this week in DRC?
What he didn't know that there was a hearing?
A few things that need to be recognised here:
In DRC, VUP is suing Gecamines and Kamoto (Glencore) for $15mil being the unpaid part of the $20mil is says it surrendered Musonoi and the other two licences for.
RRR is neither a defendant nor the plaintiff but it is an interested party. As an interested party it has been recognised by the Court. The Court has granted the DRC version of a Garnishee Order (https://www.checkmyfile.com/jargon/garnishee-order.htm#:~:text=A%20Garnishee%20Order%20is%20a,to%20following%20a%20court%20order.)
This means that the $15mil is frozen and cannot be paid to VUP by Gecamine/Glencore, even if they wanted to.
Separately, RRR has secured an order freezing Kamoto's bank accounts in the DRC and secured a lien on its assets.
The Court has accepted RRR's standing and issued protective orders. VUP will now have to prove several things to the court, including that it could dispose of the assets in the manner that it said it did. It will be difficult for them to do that, since they do not have the authority to do so. By prove, I mean produce the relevant documents.
As to RRR's cash position there are two completely separate matters: 1. The $20mil in the DRC and 2. Tortious Interference in the UK. The first relates only to the $20mil and RRR's position will be that if the transaction is recognised 50% belongs to RRR. That does not expunge RRR's claim for tortious interference. The claim would be for the loss to RRR. The loss would be based on what revenue the asset would generate over its life: the starting point would be here https://www.proactiveinvestors.com.au/companies/news/209771/red-rock-resources-proceeding-to-completion-for-cobalt-and-copper-assets-joint-venture-in-the-democratic-republic-of-congo
Having established the legal position in the UK ie., taken advice from Counsel. RRR then needs to get advice on quantum. AB quite clearly says that we were given Musonoi on the basis that there was at least 375,000 tonnes of copper there and about 24,000 tonnes of cobalt. RRR would need to do a DCF and then make adjustments. However you calculate it, it is a big number.
You need to note that a claim is not the same as a settlement or compensation. All of this is standard in these types of cases.
So far so good. We should know more by back end of next week.
DYOR
Yes Robins let's hope so.
I will revert back to posting little. I just wanted to bring a little balance because the other day ramper "helpful" was making it to be a certainty that RRR would get millions. He even mentioned figures that RRR could receive half to $1 billion. I'm sure he wouldn't mind but I'm sure most wouldn't want some new naive investor to sink all their money into RRR because of what he said.
Zumore I hope you are wrong and AB has tied things up properly but us long term holders remember his many mistakes too.
For those who like to contact AB so he can boost your confidence in Red Rock. You should contact and ask him if Red Rock did complete the formal registration of the joint venture.
Small correction. That extract below says neither party had control.
Hawaii I'm not so confident. After all we are putting confidence in a man who has a long long list of disastrous deals, that resulted in losses of many millions at both here and his previous company RGM.
In that below 2020 Stockbox interview (from 11 mins to 11 min 40 secs) he stresses the importance of everything being registered in the DRC. Yet in Red Rocks last final results RNS (31 Dec 2020) it says:
VUP Musonoi Mining SA
"On 2 March 2019, Vumilia Pendeza S.A. ("VUP") and Bring Minerals S.A.U. ("B.Min"), the joint venture partners, Red Rock Resources Congo S.A.U. ("RRRC"), a wholly owned local subsidiary of the Company, signed the "Statutes of VUP Musonoi Mining SA" ("VMM S.A."), the joint venture company (incorporated in the Democratic Republic of Congo) through which the JV Project will be pursued. RRRC owns 50.1% of VMM S.A, however the entity is operated jointly and managed by the board of Musonoi Mining S.A. with no party classified as having formal control. The Company is working with its local partners in order to complete formal registration of the joint venture in the near-term"
........
I'm also pessimistic because for the past few years it's been in the books with a value of £583,000. Also VUP didn't have to consult RRR to surrender its assets. So clearly they had control even though RRR said they had a 50.1% controlling interest.
Bell has said that they were seeking legal council on the matter and they have frozen Glencore's accounts in the Congo, none of this would be possible if the JV was not watertight.
Zumore it does make me think if AB has not made a watertight JV with VUP which has allowed them to proceed on their own. I hope not but AB using the word morally did make me think it was an odd choice of words.
Looking better.
Fingers crossed on Luanshimba.
You believe the paid stooges? How do you still have any money?
RRR featured on Vox today, according to Zak Mir the shares are due to move to .80p short term, if the right news comes that could easily be exceeded of course, the shares do appear to have turned positive from a 6 month period of downside. The high was 1.35p in February.
https://www.youtube.com/watch?reload=9&time_continue=375&v=i1NCdZ1KJ6s&feature=emb_logo&ab_channel=**********
The AGM won't be till late January/February.
It’s still a coin flop whether Andrew Bell has any part of this company by the end of the year. It doesn’t look like elephant oil will be listed by then or the Australian assets spun off. I think these RNS’s are an attempt to show him doing something but he is running out of time.
Last post should have said "31 Dec 2020 final results rns". I had put 2021.
Apart from the DRC rns from the other day the last mention I could find of the VUP JV is from the 31 Dec 2021 final results rns. In that rns there was other paragraphs about other Congo projects but I've purposely omitted them. So read the final results rns if you want to read about them.
Extracts from final results RNS:
"In the Democratic Republic of Congo ("Congo" or "DRC"), considerable time has been spent over the year dealing with issues relating to the VUP joint venture, comprising principally copper-cobalt properties near Kolwezi. Our local partner had an internal family dispute to resolve, which involved some complex issues where we considered that though vexing, it was necessary for us to co-operate. These internal issues have been resolved, some minor documentation matters remain, and we expect to be able to progress more rapidly with exploration and development in 2021"
"The Company has devoted time and effort to developing contacts and know-how in the Congo. This has taken patience, because our view of the inviolability of contracts derives from a different historical experience, where stability is assured and so a long-term view and a deferral of reward are the norm. The Congolese experience has been more precarious, and trust needs to be earned and is not easily given. While law and contract do give a decisive advantage to the party with written evidence, that works best as a reserve power, acting in support of persistence, reliability, and persuasion"
Somewhat alarming seeing people getting overexcited over this latest DRC development. In my opinion it's a recipe for PIs to get carried away and lose big money.
Remember Red Rocks supposed partners VUP didn't tell or involve Red Rock, they didn't think Red Rock deserved any money, they also didn't sell the assets but voluntarily surrendered them. So because in RNS Bell says "we are confident of our position morally" then that could mean Andrew has a super weak contract with VUP and he's not confident of Red Rock's position "legally". I don't know why everybody is saying RRR should go after Glencore because surely if RRR had a solid written contract with VUP then they would go after the supposed partner (VUP) who were trying to rip them off?
Then again investors can do what they please. Anyway here's an RRR rns from 12 Oct 2020 that highlights a dispute in Congo.
https://www.lse.co.uk/rns/RRR/summary-key-projects-vr5yaf6e8v22d3t.html
Also next day 13th Oct 2020 Bell did a Stockbox interview and between 6.40 mins and 11. 40 mins he talks a little about the Congo dispute.
Watching interview I do fear everything wasn't registered correctly and any Red Rocks contract with VUP is flimsy.
https://m.youtube.com/watch?v=rFKCJA4j7jc
https://twitter.com/graddhybpc/status/1450042930429894656?t=gO7oXCCXz8L23xeuendptA&s=19
Looking better.
Luanshimba news next please. Confirmation of a commercial copper Cobalt discovery would go down nicely.
DYOR
That’s a lot of money RRR could get, but will the shareholders see a penny? The last of the family silver is busy being sold and expenses are high. And anyone who’s had anything to do with Andrew Bell over the last 10 years should know to take whatever he says with an extra large pinch of salt.
This reputable Glencore or another one?
https://www.ft.com/content/4ecf86da-2cc1-4c7e-a5fd-7b2da1efe3f9
DYOR
Ta Helpful. I suppose I found it hard that a reputable Company like Glencore would get the asset presumably knowing we had a 51% JV stake with VUP and AB could be not involved. No need to reply as I have probably got it wrong again. Cheers.
Robins you need to read stuff or listen to stuff and then remember it so you can then place it in the chain of events.
AB confirmed that GC was in communication with RRR re Musonoi in late 2020 and then suddenly DK'd us. As did VUP.
VUP is suing Kamoto (the relevant GC subsidiary in DRC) and Gecamines for the unpaid $15mil. If VUP surrendered the license back to Gecamines, why is VUP suing Glencore? Why has $5mil been paid over but not the full $20mil. RRR has had a garnishee order issued freezing the $5mil plus the $15mil which prevents Gecamines paying the $15mil to VUP. Why would the court grant the order? Well because in VUP's court case it stated that it did a deal to surrender the license back to Gecamines, who would then sell it on to GC for $20mil and Gecamines would then pass the $20mil on to VUP.
Why did GC not just deal directly with VUP? Well because they had already been in negotiations with RRR re the VUP JV and already knew what the situation was. Doing a deal with the VUP JV through RRR was going to be more expensive and so they cut us out by going the back door route.
Unfortunately for them they fell out and VUP has put chapter and verse in the DRC court suing for its $15mil. RRR would not have secured the Garnishee order so quickly unless it was clear and further RRR has frozen Kamoto's bank accounts and secured a lien on Kamoto's DRC assets.
Both GC and VUP have a serious problem but the big cheque for us is GC.
I have some legal training and am familiar with some of these issues so it makes it easier for me. But get hold of the hard points and then it makes sense.
https://uk.practicallaw.thomsonreuters.com/5-382-9829?transitionType=Default&contextData=(sc.Default)&firstPage=true#:~:text=Interference%20of%20Contract-,Related%20Content,in%20damages%20to%20the%20plaintiff.
RRR is now getting Counsel's opinion in the UK and then it will need advice on quantum.
The claim should be sufficiently large so that a legal funder would take it on.
DYOR
Helpful is it possible that Glencore too were deceived and we have no claim against them? Or would the simple thing for Glencore to do is give the assets back to us? Or are there too many parties all guilty and RRR will have to fight them all through the courts? Or will Glencore simply send us a cheque? Very mirky.