Agreement with Ariel Partners LLP - Rationalisation of Kenyan interests
Dated: 19 April 2012
Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Greenland, Colombia and Kenya, and interests in steel feed, uranium, and rare earths, reports on developments relating to its Migori Project in Kenya.
The Company has appointed Ariel Partners LLP ("Ariel") for an initial period of four months to assist the Company in restructuring its directly and indirectly held interests in the Migori Project. The Migori Project has a NI 43-101-compliant Indicated Mineral Resource of 1.172m oz of gold. Part of the project, the KKM area, has a more recent 2011 JORC-compliant Indicated and Inferred Mineral Resource Estimate of 0.577m oz of gold. In addition the Macalder tailings have a 2011 JORC Measured Resource of 68,000 oz of gold.
Mid Migori Mining Ltd, a Kenyan company which is the owner of the Migori Project, is 15% owned by Red Rock and the balance is held by Kansai Mining Corporation ("Kansai"), a Canadian company. Red Rock has the right to farm in to a majority position in Mid Migori Mining Limited by performing exploration work, and is manager of the Migori Project with certain additional rights.
As announced on 2 February 2012, Red Rock now owns and controls, or has the option to own and control, 45,552,237 common shares of Kansai representing it believes 37.96% of the total issued and outstanding common shares of Kansai.
Kansai has also entered into an exclusivity agreement with Ariel under which for a period of three months it will deal exclusively with Ariel in relation to possible transactions relating to the Migori project and assets.
Ariel seeks to use its extensive network of contacts it has developed through its principal Benjamin Hill's expertise in the natural resources sector to provide bespoke business development and corporate services to companies in the sector.
The principal of Ariel, Benjamin Hill, is a qualified Barrister with a background in private practice and in-house roles with a variety of investment banks before joining RAB Capital in 2004. During his time at RAB, Benjamin worked primarily with the manager of the RAB Special Situations Fund, a globally focused natural resource investment fund, working on the origination, negotiation and structuring of new investments on behalf of the fund. Andrew Bell, Chairman of Red Rock, states: "The attribution of a proper value to the Kenyan assets is unlikely until there is a simplification in the holding structure and a unification of the various interests. This is what we have for some time sought, and we have every confidence in the capacity of Ariel, whose principal and consultants we have long known, to structure and carry though a transaction".
Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.
020 7402 4580 or
Red Rock Resources plc
020 7402 4580 or
07757 660 798
Red Rock Resources plc
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Philip Davies/David Porter
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