(Alliance News) - Red Rock Resources PLC on Monday said it has entered into an option over former gold and silver mining and exploration assets at Zlata Bana, Slovakia.
Shares in Red Rock were down 7.1% at 0.88 pence in London shortly before close.
The natural resources development firm with assets in Kenya, Australia and Democratic Republic of Congo will pay EUR10,000 for a due diligence period ending September 21 and make a EUR23,000 payment to take a 50% interest in the Zlata Bana licence.
With the option exercised, Red Rock would acquire a 50% interest in all the other assets including land, vehicles, buildings, and mining equipment. The consideration for exercising of the option is to be EUR250,000 worth of new Red Rock shares. Another EUR100,000 shares will be issued once the process of transfer completes.
Zlata Bana's vendors consist of Lubomir Konkol and his associated parties, with a joint venture to be established between Konkol and Red Rock.
Red Rock will be responsible for certain joint venture expenditures expected to be no less than EUR100,000 in 2020.
Separately, Red Rock noted that the board of Jupiter Mines Ltd, in which it has an investment, has approved progressing an initial public offering of its Central Yilgarn Iron Ore assets.
Jupiter will also receive ZAR156 million, around GP7.1 million, of a ZAR330 million interim dividend declared by Tshipi e Ntle Manganese Mining Prop Ltd.
By Anna Farley; annafarley@alliancenews.com
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Red Rock Resources (RRR)