(Alliance News) - Red Rock Resources PLC on Thursday said it raised GBP500,000 from a placing of new shares, which will be used towards developing projects.
The Africa, South America and Australia-focused natural resource exploration and development company said it placed 666.7 million new shares at a price of 0.075 pence per share.
Shares in Red Rock Resources were down 13% to 0.090p each in London on Thursday morning.
It said the proceeds will go towards lithium production and export operations in Zimbabwe, gold studies and development in Burkina Faso, costs of accounting and audit, and other working capital purposes.
Red Rock Resources said the new shares are expected to be admitted to trading on AIM in London on or around Thursday next week.
After this has occurred, Red Rock Resources will have 3.34 billion shares in issue.
"We have been advised that release of the arbitration award and payments under it in the [Democratic Republic of Congo] ought to be delayed to after the election, now only one week away. While we had expected a conclusion this week, the delay is sensible and prudent as any actions taken too close to election day when suspicions run high can be open to misinterpretation," said Chief Executive Officer Andrew Bell, referring to its former copper-cobalt joint venture via a subsidiary obtained in 2022.
"We therefore resolved in an uncertain economic environment to strengthen our balance sheet before year end by other means, accepting a funding offer, which also enables us to continue driving forward our gold and lithium production and pre-production activities in Africa."
By Greg Rosenvinge, Alliance News senior reporter
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Red Rock Resources (RRR)