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Red Rock Resources Share Chat (RRR)



Share Price: 0.235Bid: 0.23Ask: 0.24Change: 0.01 (+4.44%)Riser - Red Rock
Spread: 0.01Spread as %: 4.35%Open: 0.23High: 0.245Low: 0.23Yesterday’s Close: 0.225


Share Discussion for Red Rock (RRR)


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chalkminer
Posts: 6,228
Off Topic
Opinion:No Opinion
Price:0.26
Ladeside
14 Jul '14
Non sale of El Limon will not be seen as good...back to YA for more CLN's at lower sp if no sale IMO. AB is virtually giving it away as in effect the buyer is only are taking over the $2.5 debt.
 
MrMagic
Posts: 7,156
Observation
Opinion:No Opinion
Price:0.26
View Thread (2)
Biff
14 Jul '14
Quite a few assumptions in your posts there:

"then hopefuly we won't need any further fund raising for 6 months.".

That's a possibility but not a given. AB could choose to use cash to immediately pay off more debt and then continue the regular fund raises until all debts are paid off. Or he could use the money to invest in "something" (maybe more JMS shares) and just continue the regular fund raising. Lots of possibilities imo.

"Ivory Coast is covered for the foreseeable by Daniel Sklan."

I'm still not personally convinced that £100K will go very far but DYOR here. Material I have read suggests that there is a cost for just gaining the licenses themselves let alone any actual exploration. We were informed on 4th April that RRR had applied for 3 licenses but we have not since been informed that any have been granted. It has taken 1-2 years for some companies to be granted licenses. Things have historically been turbulent in the IC but times are changing and hopefully now things are generally better and the red tape far less than it was.

"then we're back to square one and we have a small gold mine that costs us nothing "

I would challenge that view on the basis that all profits we are making from the mine are being pumped back into it (for whatever reason) instead of providing income to RRR. An outfall of that is that we are diluted to faciltate fund raising wheras clearly a portion of that funding could come from mine profits instead. Therefore as I see it, the mine IS costing us something but others may have differing views on this.
biffbaffboff
Posts: 1,142
Off Topic
Opinion:No Opinion
Price:0.26
RE: El Limon
14 Jul '14
:-)
Didge
Posts: 1,961
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Opinion:No Opinion
Price:0.26
View Thread (4)
RE: El Limon
14 Jul '14
Cherry Blossom.
Ladeside
Posts: 3,654
Off Topic
Opinion:No Opinion
Price:0.26
View Thread (4)
RE: El Limon
14 Jul '14
Yes, of rubble !!
Dan_The_Man
Posts: 7,147
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:0.26
View Thread (4)
RE: El Limon
14 Jul '14
Biff, why would they change their minds? This mine can generate 450tpd ha ha ha ha ha ha...
biffbaffboff
Posts: 1,142
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Opinion:No Opinion
Price:0.26
View Thread (4)
El Limon
14 Jul '14
...and should they want more time for DD then we will receive another $50k. If not then they confirm they are going ahead with the purchase and we will receive $2.25mil within a month. However, they may change their minds entirely, then we're back to square one and we have a small gold mine that costs us nothing but gives us nothing and we will need to raise further funds to survive in the next few months.
biffbaffboff
Posts: 1,142
Off Topic
Opinion:No Opinion
Price:0.26
View Thread (3)
RE: YA out now IMHO
14 Jul '14
21,136,355 shares left on 4th July, so I would imagine they have finished, judging by the trades over the last few weeks since. Fingers crossed this could be the bottom.
biffbaffboff
Posts: 1,142
Off Topic
Opinion:No Opinion
Price:0.26
El Limon
14 Jul '14
So, if all goes to plan and we receive £1.4mil in the next month or so, then hopefuly we won't need any further fund raising for 6 months. Ivory Coast is covered for the foreseeable by Daniel Sklan.
I see that as a positive. If YA are out then we have no downward pressure, and if IC proves worthy then this SP should start to edge up. Should we need to raise funds for IC after DS's £100k is gone, then dilution shouldn't be quite so painful, and shouldn't be neceesary until at least the new year. In that time, Kenya news may be positive too. We also have Greenland but I don't hold any hope there for a good few years now, but fingers crossed for a surprise. This might be the turning of the worm.
MrMagic
Posts: 7,156
Observation
Opinion:No Opinion
Price:0.26
Lades
14 Jul '14
I personally think the term "ability to complete a deal" pretty much assumes that the deal, whatever it is, is a profitable one (unless it is a planned loss-leader that will prove a successful investment for future deals).

In terms of the "much needed cash" you referred to, the initial $2.5m equates to £1.4m at current rates (less the 7% commission). When you consider that the company has already raised more than that (£1.459m I think) this year in the first 6 months via placings, issue of equity and CLNs, and mostly for debts and working capital, then that £1.4m doesn't really look much at all imo. Still, you could look at it as 6 months of funding that shouldn't require any dilution in that time period. There would also be an additional $1.5m / £876K to come (again less 7% commission) any time in the year following deal completion. Anything is better than nothing I guess.

What I can't understand is why we are continuing to "invest" profits from the mine back into it if we are resigned to selling it. To me this is like putting your clapped out old car on the market but every week spending more and more money on it anyway, or like putting your house up for sale and then continuing to spend money on it to upgrade the central heating, the kitchen and so on instead of spending that precious money on the new house that you will buy once you have completed the sale. It seems madness to me, but then wthdik?



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