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When the El Limon sale dates were continually missed I can remember former thread regular rrrRRRrrr losing patience with Andrew Bell on twitter. rrrRRRrrr then offered Bell a £1000 bet that the El Limon sale wouldn't be completed by Christmas 2015. Bell accepted the bet.
Bell lost the bet. rrrRRRrrr said that Bell did quickly send him the £1000.
From part of the payment from the promissory note RRR invested $500,000 (Canadian dollars) in PARA and received 2,5 million PARA shares:
https://www.investegate.co.uk/red-rock-resources--rrr-/rns/colombia-update/201806071422436885Q/
Did RRR sell those shares? If so how much money did they get when selling?
I will guess they were sold on the quiet but no RNS?
The sale to these particular buyers was announced in May 2014:. https://www.investegate.co.uk/red-rock-resources--rrr-/rns/proposed-sale-of-colombian-interests/201405130700239099G/
On the surface it initially didn't look too bad: (1) $2.5 million on completion of sale. (2). Year later $1.5 million prom note. (3) Then $1 million through royalties.
I recall the RRR price being around 0.27p when first announced.
Then throughout the next year the sale completion dates were missed..the deal got weaker and weaker until Bell agreed to receiving $3 million through royalties..there was also no longer any big first payment on completion of sale. Bell had agreed an utterly rubbish sale. In fact so rubbish that when the sale transaction was completed (I believe in May 2015) the RRR share price was down to 0.07p. So around 0.27p when sale first announced and 0.07p when sale completed. Pathetic!
Then quickly afterwards the incompetent Bell invested in Elephant oil and before you knew it the RRR price was down to 0.02p.
I always laugh when people call Bell a dealmaker. Yes a s*** dealmaker.
Morning Trolls,
I won't mention the gold price..
https://seekingalpha.com/article/4359392-jupiter-mines-realize-significant-value-from-iron-ore-assets
https://www.mining.com/copper-price-surges-to-two-year-high/
https://twitter.com/andrew_neal7/status/1285585493455970304?s=19
Helpful - "We are owed the best part of the $3mil as a royalty on El Limon. If you check out the latest corporate presentation it tells you what the current position."
Still trying to flog this dead horse Stephen? It really is getting embarrassing TBH.
A quick look at the July presentation you mentioned gave me the usual chuckle. Firstly I see that they STILL can not get the terms of that royalty correct in the presentation. It was incorrect in previous presentations too imo.
The presentations say :
3% net smelter royalty over $1m
0.5% net smelter royalty over $2m
I believe this to be the wrong way around as I have pointed out before but perhaps it's a wording style I don't understand.
The official RNS that was published in Apr 2015 stated:
"Additional payments of up to USD2,000,000 will be paid in the form of a 3% net smelter return royalty"
"A final royalty stream of up to USD1,000,000 will be paid following the payment in full of the First NSR in the form of a 0.5% net smelter return royalty"
(https://www.lse.co.uk/rns/RRR/columbian-gold-assets-sale-agreement-83uakhyjv8go7nu.html)
Seems clear to me. The 3% NSR is for the first $2m and the 0.5% royalty is for the final $1m.
I suggest you go have a word with the clowns back at the office and get them to correct the presentations.
I also could not help but chuckle at the fact the presentation gives ESTIMATES of the royalty. Why? Have Para not actually been paying those royalties ? Why is the royalty revenue for 2018 estimated at $45,000? Surely they should know EXACTLY what the payments were. Same for 2019. Why is it they are so reluctant to give ACTUAL figures and are instead only giving out estimates. It's ridiculous.
As always the I find the "expected", "anticipated", "could be", "may be" would love it to be" estimates for the future a pile of fantasy nonsense. They've been making similar claims for hopes and dreams every year since the mine was sold.
The presentation says the estimated quarterly royalty amount is circa $10,000 which is pitiful and that's an ESTIMATE!!
The royalty estimate for 2018 was $45,000 for the year, the estimate for 2019 was $40,000 for the year.
Let's take the 2018 number. $45,000
The company has to recoup $2m from the first 3% NSR. At $45,000 a year that is going to take 44 YEARS !!!!!!
If that $45,000 represents the 3% royalty then the equivalent per year for a 0.5% royalty would be $7,500
At $7,500 a year to recoup that final $1m would take 133 years !!
So that's 177 years to recoup the full $3m using RRR's estimate for 2018.
Even if you take the (imo) fantasy estimate of $200,000 a year it will take 10 years to recoup that first $2m of the royalty and then a further 30 years to recoup the final $1m. So 40 years to recoup the full $3m royalty.
Any way you slice and dice this it's a total red herring pile of nonsense.
DYOR
Hey Dukey,
stop embarrassing yourself and do some reading.
We are owed the best part of the $3mil as a royalty on El Limon. If you check out the latest corporate presentation it tells you what the current position.
Migori: we have done everything required to have the licenses reissued. See the various RNSs and interviews. 1.2mil ounces hard rock and 60k ounces in tailings both JORC standard. The MRB has recommended that the licences are reissued to RRR: don't believe me, check out the Kenyan mining cadastre.
Victoria: 11 license applications with Blue Ribbon the priority.
Victoria is very hot and Paul Johnson has already said that RRAL has been approached about deals on the licenses.
I posted on here an interview with Eric Sprott a week ago that said CAD$70 per ounce in the ground was too low a valuation in the current price environment. What does that make Migori worth?
DYOR
https://twitter.com/business/status/1285388799120420870?s=19
Indeed, Migori has been "on-going" for over 26 years I believe !!!
Laughable stuff. Still no license either. That's been "imminent" for how many years now?
Nothing will ever change here. Not until the BOD are removed and replaced.
DYOR
https://twitter.com/RRR_RedRock/status/1285114778302783488?s=20
Worth a read. Confirms the Migori JV, that DRC is ongoing etc.
And what might the terms of a Migori JV be?
DYOR
https://twitter.com/SpotlightMining/status/1283401432788541443?s=19
Pity some of the POW and Paul Johnson magic stardust hadn't fallen on us especially as we have a majority holding in RRR(australasia) but there you are maybe not such a big deal for us.
No RGM, but still RRR. And yes , although not sold since 2010, massive paper £ losses. I have been close to 3% during Greenland's exploration. And remember when RRR had 4% Jupiter , which was valued on the ASX at over A$ 40m and RRR 's market value was itself > £50m in 2010,
Wow Briarbank. You are persistent.
Don't tell me you still hold RGM shares?
*DRC
Still live. No fights in or out and lockdown till at least 21/07
https://www.universalweather.com/blog/coronavirus-covid-19-impact-on-business-aviation-in-the-middle-east-and-africa/
Missing gold from El Limon?
Yes I do. AB blamed the site manager.
Mr Magic & Zumore . Yes I am still a holder of RRR . Unlike Peter G.
Had to come back after all the reminiscing. "I remember it well."
That said.............Whatever happened to Co/Cu exploration in the DMC . A "sweet" spot right in the middle of FTSE 100 majors?
anyone remember the gold which went missing from the El Limon mine?
https://www.youtube.com/watch?v=AJrERlEL2cA&feature=youtu.be
Worth a listen.
DYOR
Weren't they located in the British Virgin Islands?
Greenland money in a Cypriot bank and completion bonus paid to the lawyers.
D-Bar oil!
I remember when the Greenland asset sale was supposed to be nearing D-Bar was announced and their was an almighty ramp on that.
https://www.investegate.co.uk/red-rock-resources--rrr-/rns/resource-star-ltd---binding-term-sheet-signed/201308020854498257K/
The rampers had their calculators out working out how many tens of millions would be flowing in.
https://www.investegate.co.uk/red-rock-resources--rrr-/rns/resource-star-ltd-update/201309051548203523N/
RRR had almost 40% stake in Resource star (later called star striker). After many months of ramping I recall resource star announcing they wouldn't be completing the acquisition. Of course Andrew Bell and Red Rock never did RNS RRR shareholders that it was off. So typical of Bell.