Member Info for zumore

As the years go by to me he seems to get more sneaky because on numerous occasions he didn'nt tell shareholders until many months later that they took out loans (YA and Riverfort loan in below post) or gave out loans. In the 24 December 2019 final results RNS (under impairments) there is 3 instances when loans were made that he didn't bother to promptly RNS shareholders about. Shockingly all these loans were disasters that were later written off. From said RNS:

(1) Red Rock made £1.01 million in loans to Steelmin. Loan written off.

(2) Red Rock bought near $100,000 in Amulet diamond shares + also gave them £306,106 in loans. Loan written off.

(3) Red Rock gave a £267,983 loan to Legacy hill resources. Loan written off.

To me this Legacy hill resources loan is particularly shocking because they were Regency mines partners in a failed American coal mine. At the time Andrew Bell was CEO/ Chairman of Regency mines. So without telling Red Rock shareholders he basically dipped his hands in Red Rock's money to loan Regency mines partner money.

To me Bell is an absolute disgrace who makes disastrous decisions without consequence. He's now in his mid 60's but I don't see him retiring for another decade or two. Why would he? I'm sure he's made millions out of Red Rock.

"In addition, Red Rock has issued to Riverfort Global Opportunities PCC Limited and YA II PN Limited a total of 16,000,000 thirty six month warrants, exercisable as to half at a price of 1.6 pence a Share, and as to half at a price of 2.4 pence a Share, in consideration of the extension of existing facilities and grant of a six month repayment holiday on drawn amounts"
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I've managed to find details about this mysterious YA and Riverfort loan. Details about it are buried in the Red Rock 24 December 2019 final results RNS. Under note 19 in that RNS it says:

"On 11 April 2019 The Company's 100% owned subsidiary, RRR Coal Limited, agreed a loan facility of up to US$1,000,000 with Riverfort Global Opportunities PCC Limited and YA II PN Limited. The terms of the loan call for US$400,000 to be transferred to the borrower, with additional tranches available to the lenders at their absolute discretion. The notes are secured by 5,500,000 shares in Jupiter Mines Limited, which were transferred from the Company to the borrowers as well as by a corporate guarantee executed by Red Rock Resources plc. The notes carry an interest rate of 10% and come with a 7.5% implementation fee and are repayable over a period ending in April 2020. A total of US$200,000 has been drawn down on the facility to date"

Helpful, you and your fellow CLN lenders are being taken for mugs by RRR management.

Bear in mind Kansai will be cashing in a $1 million prom note in 15 months. So rolling over your CLN again would be unwise. Also bear in mind you are not told when RRR take out hidden loans from YA and Riverfort. Lastly on many occasions you have said you and your CLN lenders money is safe because you could sell Red Rocks Jupiter shares .. but from Jupiter annual report it suggests that Red Rocks Jupiter holding is smaller than any of us thought. So JMS shares could be sold and money frittered away long before you or your fellow CLN holders could get your hands on JMS shares.

Come December 19th you should be demanding you CLN loan be paid back in full. Rolling it over again would be plain stupid. In my opinion you and other CLN lenders are getting fobbed off year after year and are all being taken for mugs. Other Red Rock loans seem to be priority over yours. You are being treated like mugs.

Helpful says:

"The Riverfort facility I think was previously undeclared: it is an existing one and he has drawn against it. He has cash from the recent placing: he should be clearing the facility from the placing proceeds"
.....

Yes but today's RNS says that RRR are giving warrants to YA and Riverfort so they can have a six month repayment holiday. RNS says: "in consideration of the extension of existing facilities and grant of a six month repayment holiday on drawn amounts"

So we can conclude if Red Rock need a six month repayment holiday then they must owe YA and Riverfort a pretty big amount. Of course none of us know how much they owe because Red Rock never bothered to release an RNS.

"As originally announced on 15 June 2018, as part of a transaction whereby Red Rock acquired the remaining beneficial interest in the Project from a subsidiary of Kansai Mining Corporation Limited ("Kansai") the renewal of the licenses triggers the following actions by Red Rock:

· Payment of £25,000 to Kansai by the issue of 3,571,429 Red Rock shares ("Shares") at a price of 0.7p a Share;

· Issue of a $1,000,000 Promissory Note payable in fifteen months to Kansai;

· Grant to Kansai of £500,000 of warrants exercisable for 30 months into Shares at 0.7p a Share.

A FURTHER ANNOUNCEMENT WILL BE MADE IN RELATION TO FUTURE OBLIGATIONS TO KANSAI"
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Well if Kenya license renewel DID trigger what was said in the 15 June 2018 RNS then surely that would mean RRR will still need to make a $2.5 million in payment to Kansai? I guess payment may be spread out but today's RNS says "a further announcement will be made in relation to future obligations to Kansai"
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Also today's RNS says RRR have given warrants to YA and Riverfort and the RNS says the reason for this is "in consideration of the extension of existing facilities and grant of a six month repayment holiday on drawn amounts"

I probably don't read all Red Rock RNSes but I don't recall reading recent Red Rock RNSes to say that they were back to getting loans from both YA and Riverfort.

Red Rock's annual results will soon be released. So maybe that will reveal what hidden debts they have that they never bothered to inform PIs about.

Thanks alot. In the past AB closed a couple of his Twitter accounts. So I think saving that potentially misleading tweet is a good idea.

I don't know how to screenshot Colin. Somebody ought to screenshot that tweet before it disappears.

Many times over the years I've often thought "one day he'll make a mistake and he'll end up behind bars".

I'm an eternal optimist. Somebody please screenshot that tweet.

I see in JMS annual report it does say RRR held over 9 million JMS shares but on page 23 in same annual report it also says Bell's company Red Rock Resources held over 17 million JMS shares. So one of those figures was incorrect.

This RRR tweet https://mobile.twitter.com/RRR_RedRock/status/1306180546012344320 from 16 September said RRR held over 15 million JMS shares.

If RRR did only hold 9 million JMS shares would AB be stupid enough to post such a tweet saying RRR still held over 15 million JMS shares?

For those that don't know Corcel were previously called Regency mines. Also the RMI annual report was signed off by the RMI directors on 30 September 2020. So you'll below that means Corcel won't go chasing repayment of these purchased debts until at least 30 September 2021.

RMI annual report says:
.............

12. NON INTEREST BEARING LIABILITIES - continued

Regency have confirmed that it will not request repayment of these loans (totalling $1,710,000) for a period of 12 months from the date Resource Mining Corporation Limited (RMC) directors sign the director’s report for the 30 June 2020 year-end financial statements unless one of the following conditions is met:

(i) RMC appoints an administrator, administrative receiver, receiver, trustee or liquidator over the whole or any substantial part of RMC's undertaking, property or assets or a petition is presented/order is made or a
resolution is passed for the winding-up of RMC; and/or
(ii) RMC declares or pays a dividend or distribution; and/or
(iii) RMC takes any additional debt which is not pari passu with, or not structurally subordinated to, the Regency facilities . For the avoidance of doubt unsecured debt from short-term advances from RMC directors and unsecured debt from Sinom (Hong Kong) Limited for funding operations of RMC are accepted as long as they are pari passu or structurally subordinated to the Regency facilities.

Sinom continues to provide additional interest free advances to the Company. These advances are unsecured with no set repayment date. Amount owing from these advances as at year end is $1,126,087 (2019: $887,587). Sinom has agreed not to call for the outstanding amount prior to 30 September 2021 unless Resource Mining Corporation Limited is in a position to repay the amounts.
...................................

When somebody says they are "going long" they are trying to make people believe that they have no intention of selling and instead they will hold onto their stock for a very very long time.

Of course they maybe lying. :)

Mr Magic, I'm pretty certain Red Rock will need to pay Kansai Mining the $2.5 million + $1 million promissory note.

Back in 2009 Red Rock's original agreement with Kansai Mining was in this RNS:
https://www.investegate.co.uk/red-rock-resources--rrr-/rns/further-re-acquisition/200909171542112560Z/
Red Rock would initially own 15% of Kansai's subsidiary company Mid Migori Mining (which held the gold licenses). Red Rock would then have to pay 100% of all exploration costs and they had 6 years to take it up to a bankable feasibility study. Then RRR would gain an additional 45% in Mid Migori Mining. They never took it up to a bankable feasibility study.

Then when they lost licences in 2015 the 26 June 2015 RNS announced a change in the agreement with Kansai. RNS said:

"Red Rock's farm-in agreement is replaced by arrangements under which any interest in the Migori Gold Project or the other assets of MMM that may be retained by or granted to MMM or Red Rock shall be shared in the ratio 75% to Red Rock and 25% to Kansai. Kansai's interest will be carried up to the point of an Indicated Mineral Resource of 2m oz gold"

I was completely wrong the other day when I thought Kansai would have to contribute 25% towards exploration. I believe Kansai "25% carried interest" just meant that RRR would again pay 100% exploration costs but Kansai would keep 25% until Red Rock had attained a 2 million Oz indicated resource. They had 1.2 million Oz resource and so RRR taking it up to 2 million may never have happened + no doubt cost RRR many many millions in further exploration.

Then in 2018 that 2015 agreement was scrapped in this RNS: https://www.investegate.co.uk/red-rock-resources--rrr-/rns/progress-report---african-exploration-assets/201806150700024789R/
RNS clearly says within 3 months of License renewel RRR would pay Kansai mining $2.5 million cash + a $1 million prom note.

For years RRR have been paying 100% of Kenyan asset exploration costs. So they do need to pay Kansai the money so they finally get rid of them.

I see in that interview AB now says it's an "effective" two months since they got the Kenyan licenses back. Though August RNS says they were renewed on 2 August. I assume he means when it was all officially signed off?

It doesn't matter if it's two or three months eventually they still need to find big money. Though I suppose they may find a rich partner who pays Kansai the $2.5 million.

I don't post over on ADVFN but I see a poster there believes that RRR won't yet have to pay Kansai mining the $2.5 million because the Kenyan government haven't given the correct licenses. However extracts from both RNSes below say "renewal" so renewal means you get your licenses back that you previously held. So obviously RRR are happy because licenses were renewed. So from RNSes it seems pretty clear that RRR will have to pay Kansai mining $2.5 million.

RNS 17 August 2020:

"Further to the announcements of 31 March 2020 and 19 September 2019, the anticipated renewals of Prospecting Licenses PL/2018/0202 and PL/2018/0203 (formerly SPLs 122 and 202) have now been received for a period of three years from 2 August 2020"

RNS 15 June 2018:

"In the event of a renewal or reissue of licenses covering the Assets the Company will within three months make further payments, subject to such renewal or resissue not being on unduly onerous terms, as follows:

(1) $2.5m payable in cash,

(2) a $1m promissory note payable 15 months after issue"

Another pointless post but last post should have said:

"At present its resource 1.2 million"

In previous post lse's built in spellchecker changed "its" to "it's"

RNS extracts below are from the 2015 agreement with Kansai mining. Then RNS extracts are when they changed to a new agreement in 2018.

I'm certainly no expert in these matters but in the 2015 agreement it looked like Red Rock would have had to pay 75% of exploration costs until they had got a 2 million ounce 'indicated' resource. At present it's resource 1.2 million. So I would assume Red Rock decided instead of them paying 75% of exploration costs until they got a 2 million indicated resource it would be much cheaper to pay Kansai mining off and then look for a new partner.

I guess for Red Rock they can't get a new partner until they pay Kansai mining off.

Here are extracts from 26 June 2015 RNS:

"Red Rock has now executed an agreement with Kansai Mining Corporation Ltd ("Kansai"), the other shareholder in MMM, pursuant to which Red Rock's farm-in agreement is replaced by arrangements under which any interest in the Migori Gold Project or the other assets of MMM that may be retained by or granted to MMM or Red Rock shall be shared in the ratio 75% to Red Rock and 25% to Kansai. Kansai's interest will be carried up to the point of an Indicated Mineral Resource of 2m oz gold. Red Rock is to have full management rights and the conduct of legal proceedings on behalf of both MMM and itself. Red Rock at the same time surrenders all its share interest in Kansai and pays £25,000 to Kansai, with a further £25,000 due upon recovery of the Migori Gold Project."

Extract from 15 June 2018 RNS:

"Red Rock also announces, further to its announcement of 26 June 2015, that a revision to its agreement with Kansai Mining Corporation ("Kansai") of 20 June 2015 ("2015 Agreement") was executed on 11 June 2018 ("2018 Agreement"). The effect of the revision is that Kansai exchanges its 25% carried interest in the mineral assets of Mid Migori Mining ("MMM" and "Assets") under the 2015 Agreement for a $50,000 payment, leaving Red Rock with a 100% interest. In the event of a renewal or reissue of licenses covering the Assets the Company will within three months make further payments, subject to such renewal or resissue not being on unduly onerous terms, as follows:

(1) $2.5m payable in cash,

(2) a $1m promissory note payable 15 months after issue, and

(3) £500,000 of warrants into Red Rock shares at a price 20% above their average closing price on the three trading days prior to issue."

This is the link to Bell's LSE account: https://www.lse.co.uk/profiles/andrewrbell/

His top post was an answer to my question when i gave him a link to the 2018 RNS and asked him if the $2.5 million payment still needed to be paid to Kansai mining.

MrMagic, you've seen Bell's response on here the other month when he confirmed that the $2.5 million payment (mentioned in the 2018 RNS) would still need to be paid. That 2018 RNS said $2.5 million cash would need to be paid to Kansai mining within 3 months of license renewel. Red Rocks RNS from a few months ago said licenses were renewed on 2 August.

So how Red Rock will find that money I don't know. I also don't know if Red Rock will the pay money on time.

A bigger company to test the validity of charts. ASHM. 391 less than two weeks ago, now 352. Support level is 342.6. So if it falls to that price it will be interesting if it starts to rebound upwards.

Remember I'm a complete chart noob. So please nobody invest a penny on my charting observation.

To be fair I'm not overly convinced charting works with small market cap companies. After all a gang of rampers could increase the share price on these small Mcaps. So if charting does work then probably more effective on the large FTSE companies.

Looking at the charts 0.725 is a pivotal price. If it ever closes below that price then there is a big old gap to the next support level of 0.51.