Member Info for Parfett123

I miss wrote my prior message, apologies, it is 55 days until default for RRR to raise £250k + interest or lose the lot for $1. Hence if the DRC money does not land prior to this, I would expect a heft diluted raise if the business can achieve one.

£250k payment due to POW on the 19th. 3 working days = default notice (today). However 5 days have elapsed since the 19th, leaving a total 55 days left prior to POW being able to re purchase NBGC for $1.

Terms from the RNS

(3) That if Red Rock does not make any Consideration payments under 5 above within 3 business days of the due date, a Default may be declared by POW in writing to Red Rock, in which case interest will be charged at 2% per month or part thereof and Red Rock must cure the Default within 60 days, after which, provided the delay is not due to any event of force majeure, POW may reacquire its original 49.9% NBGC issued share capital for A$1 and a five year Note for an amount equivalent to any cash Consideration paid up to that date (and any cost incurred in licensing a small area of State land within EL007328);

Not bust, but an eye watering dilution if the DRC funds dont land in circa 55 days.

Strategic and Indirect Exposure

Beyond the royalty agreement, Red Rock’s exposure to Soma Gold is indirect and tied to the latter’s performance in Colombia’s gold sector.

Plans to restart operations at its El Limon mine or mill in Colombia. Based on the most recent available information, here’s what I can tell you:

Soma Gold Corp. has been working toward restarting the El Limon mill, which has been under "care and maintenance" since 2019. The company announced in December 2023 that the restart process would begin in early January 2024, with an estimated completion time of three to four months, targeting full operation by April or May 2024. The decision was driven by increased production at the Cordero Mine, which exceeded the capacity of the El Bagre mill, and the proximity of El Limon to the Aurora Mine, where Soma anticipated resuming production by the end of fiscal 2024.

However, updates from January 8, 2025, indicate delays. Soma reported that the El Limon mill restart was held up due to permitting issues for the Aurora Mine in Machuca, meaning it did not contribute to 2024 production as expected. Despite this, Soma has begun work on recommissioning the mill, with plans to process up to 200 tons per day of material from the Zancudo Mine (owned by Denarius Metals Corp.) once operational. The company stated that recommissioning is expected "in the coming months" from January 2025, suggesting a potential restart between March and June 2025, depending on progress.

Additionally, posts on X from mid-March 2025 (e.g., from

@GoldForecast

on March 16) claim the El Limon mill is "coming online in the next few weeks," which would point to early April 2025. However, without official confirmation from Soma Gold as of today, March 21, 2025, this remains speculative.

Current Status as of March 21, 2025

No precise restart date has been confirmed in official releases beyond "the coming months" from January 2025.

The restart hinges on finalizing permits and completing recommissioning work, which was underway as of early 2025.

If the X posts reflect insider sentiment or unannounced progress, the mill could restart as early as April 2025, but this is not yet verifiable.

So RRR have rights to a percentage of revenue of a non operating mine. Great

Also Grok.

Red Rock Resources Plc (LON: RRR), a London-based exploration and mining company, has historical exposure to Soma Gold Corp. through its involvement with the El Limon gold mine and mill in Colombia. This connection stems from Red Rock’s past ownership and subsequent sale of the El Limon asset, which is now operated by Soma Gold Corp. Here’s a detailed breakdown of Red Rock Resources' exposure to Soma Gold based on available information:

Historical Ownership and Sale of El Limon

Red Rock Resources originally held a significant interest in the El Limon gold mine and mill, located in the Bagre-Nechi gold mining district of Antioquia, Colombia. The El Limon mine is historically notable as one of the highest-grade mines in the region, which has produced over 60 million ounces of gold, mostly from alluvial workings. Red Rock acquired this asset as part of its broader strategy to develop a diverse portfolio of gold and other commodity projects across multiple continents.

In 2015, Red Rock sold its interest in the El Limon mine to Para Resources Inc., which later rebranded to Soma Gold Corp. in May 2020. The terms of the sale included a payment of USD $5 million, along with a potential additional USD $3 million contingent on future royalty concessions tied to the mine’s production. This transaction marked the end of Red Rock’s direct ownership of the asset but established an ongoing financial interest through royalties.

Royalty Exposure

Red Rock Resources retains exposure to Soma Gold’s operations via these royalty concessions linked to El Limon. The exact terms of the royalty agreement are not fully detailed in public sources, but it is understood that Red Rock is entitled to a portion of the revenue generated from gold production at El Limon, up to the USD $3 million cap. Soma Gold has since paused production at El Limon (as of various points post-2015) to focus on resource delineation and permitting, with plans to restart operations periodically announced—most recently targeting mid-March of an unspecified year in some investor discussions (likely 2023 or 2024 based on timelines).

When Soma Gold resumes production at El Limon, Red Rock stands to benefit from royalty payments. For example, Soma’s published models have suggested a first-year royalty payment to Red Rock of approximately USD $480,000, assuming production restarts as planned. This figure is speculative and depends on gold prices, production volumes, and operational success, but it indicates a tangible financial link. As of early 2025, with El Limon still under care and maintenance, these royalties have not yet fully materialized, though Soma’s broader production at its El Bagre operation (23,115 ounces in 2022, with targets of 35,000–37,000 ounces in 2023) suggests potential for future cash flow if El Limon comes online.

Strategic and Indirect Exposure

Beyond the royalty agreement, Red Rock’s exposure to Soma Gold is indirect and ti

Free ride in a $20m JV kicking off the exploration program in 10 weeks, £7m+ in the bank & GMET exposure with £9m+ and ever rising, not to mention everything else within their portfolio.

What a difference an active BOD makes.

Hence, as a shareholder, I would just want this RRR debacle closed out and left behind.

True, very reliant on the good graces of POW now. If they had backing from major shareholders, why not just settle the funds owed without this continuous messing around. Just looks awful to the market and those involved.

(3) That if Red Rock does not make any Consideration payments under 5 above within 3 business days of the due date, a Default may be declared by POW in writing to Red Rock, in which case interest will be charged at 2% per month or part thereof and Red Rock must cure the Default within 60 days, after which, provided the delay is not due to any event of force majeure, POW may reacquire its original 49.9% NBGC issued share capital for A$1 and a five year Note for an amount equivalent to any cash Consideration paid up to that date (and any cost incurred in licensing a small area of State land within EL007328);

Letter being served after tomorrow if no actions taken then.

Let's explore the deal timeline shall we.

Conditional agreement signed 13th March

12th June - agreement closing within 5 days

19th June - shares issued to POW with 100m warrants @ 0.15p

16th August - £250k payment delayed till September

No communication until

7th October - confirmation of payment still not paid with a raise potentially required

18th November - confirmation of further delay of payment

11th December - deal restructured, still no payment

Since then silence.

At what point does 'dealing in bad faith' come into play. Outrageous behaviour that would sour any prior relationship.

@ART - yes the Firmi JV in the Athabasca Basin.

@NikeAir - that's great, but if RRR struggled to raise £25k and had to take a loan, then how will they deal with £250k. The agreement has been delayed or restructured to help RRR at least twice since signing. At some point it gets ridiculous. I can't seem to locate the early payment comment, if true, still doesn't help with the monies due now.

It may have something to do with the £10m exploration program about to kick off in Athabasca Basin, Power Arabia build out in Saudi & Oman, handling of GMET transaction & the development of the next set of IPOs such as FDR.

Or spend £100ks on a few drill holes with a JV partner that has no cash to fund their part.....

So, by that justification, POW should allow other parties to not pay them the funds owed just becuase the old CEO is mates with the current CEO of the party failing to pay?

2020 not 2019*

Yes RRR helped develop the inital funding of POW which both companies that benefited from the influx of liquity to the market in 2019 (rising tide lifts all ships). It also helps that AJB & PJ had a long working relationship in the past that benefited both parties at the time.

We are not in 2019 anymore.

I fail to see how this the history translates to enable RRR to not abide by the agreements in place with today's BOD.

At this stage for POW, dealing with RRR is a transaction from a bygone era and personally I cannot wait for POW to shed the exposure of RRR and continue to progress with their successful model.

The question is, how will RRR pay POW the £250k cash payment that is now 2 days overdue.

Stated fgures in a case that has not been concluded and settlement paid means nothing to me other than wishful thinking.

Especially when the company owes funds NOW.

I do not account for any awards nor wish to 'guess' until such time as they have been deposited in the account for the business to deploy. If I did, I could have been sat with an investment here for the last 5 years saying 'RRR could be awarded millions shortly dwarfing the current market cap and funding RRR for the forseeable future' whilst infact just being diluted away.

I also dont believe the BOD have shown a proven track record of being able to utlise any of the 'potential' left over funds to benefit shareholders having followed them since POW got involved circa 2019.

Hi Orslega,

If the DRC arbitration is successful within the next few days, they receive the funding, they care still incredibly underwater with monies owed to multiple party's. So any future project development will again be left with little to no funding.

I just don't see how they dig themselves out of this one, even if they achieve a successful outcome. Happy to be proven wrong but I just don't see it here.

Have & Best.

Sorry I'm sitting by a swimming pool in the carrabian, so I'm not spell checking myself 🤣

I dont disagree that someone who posts so continously outdated information or irrelevant information into this group would have a specific motive to do so. The fact they then vehemently defends and abuses others who disagree just shows they do not investors bed intentions at heart.

I think if someone posts something on a public investment chat room, the information is open to review and feedback. Just as Helplful always puts DYOR.

In regards to him being the eason you invested and want to hold him accountable, unfortunately no one forced you to buy, but hopefully the lessons learnt can be utlised going forward into your other investments so as not to make the same mistake.