Member Info for zumore

Bell posted on this thread last month so I asked him if RRR still needed to make the $2.5 million payment that was first mentioned in this 2018 RNS:. https://www.investegate.co.uk/red-rock-resources--rrr-/rns/progress-report---african-exploration-assets/201806150700024789R/

Click on Bell's lse profile and you'll see his response to me in his first post:

https://www.lse.co.uk/profiles/andrewrbell/

Andrew Bell was previously saying if Kenyan licenses were renewed they would have no problem attracting a partner. When the gold prices were low he was also saying this. However now that the gold prices are high where is this partner?

In the 2018 Red Rock RNS management said if Kenyan licenses were renewed they would pay $2.5 million to Kansai mining within 3 months. Licenses were renewed on 2 August 2020.

So if it ends up Bell was fibbing and no partner happens and Red Rock then have to pay the $2.5 million to Kansai mining all by themselves. They also have to pay all the exploration costs all by themselves. Then what an utter shambles that would be.

Led down the garden path by this chairman once again. It's always him who ultimately destroys this share price. Terrible decisions. False promises. Always him!

Red Rock own around £300,000 shares in POW but RRR chairman Andrew Bell is also POW chairman.

He should never think of his POW position or the POW shareholders when he considers selling Red Rocks POW shares. I think he does, so highly unlikely he will sell them. This is detrimental to RRR shareholders because it means more RRR dilution because he won't sell Red Rocks POW shares.

that recent £1 million placing could now be gone.

if I had taken part in this recent £1 million Red Rock placing. They got 0.80p placing shares (when the price was around 1p) so they got around a 20% discount. So it looks like many of the placees will be making a big loss.

So if another placing happens here very soon then I wouldn't be surprised if Red Rock (to tempt the placees) have to make the placement price at an even bigger discount to the market price.

So if this share price is in the 0.50s, 0.40s, 0.30s or lower by the end of the year then that would be of no surprise to me.

You haven't given your opinion yet but what did you think of yesterdays £1 million Red Rock placing?

On 11th September you gave your opinion on whether the £830,000 CLN holders should convert their CLNs into 0.60p shares. You said:

"Oh you are clueless - false information again from you. I would be very careful. Simplistically, the volume is not even there right now to sell and make a profit for that volume of CLNs"
....
So in your expert opinion is there enough volume for those involved in this £1 million placing to be able to make a profit?

On 25 August Helpful posted this about a possible Kenya JV:

"RRR has said multiple times it has a JV lined up for Migori: the licenses were only renewed a week ago. It takes time to execute on a JV. I would expect something in the next couple of weeks"
.....

To be fair I have also seen AB say in the past that there would be lots of interest to do a JV on the Kenyan asset. I guess we'll soon know whether there is.

On 23 August poster 'Helpful' said:

"As to your predictions, all made up stuff that you treat as fact. Why do you think that I would be keen on AB/RRR doing a placing at a discount? AB/RRR doesn't need to do a placing: obviously, you take a different view but that is because you take no notice of facts. RRR has liquid assets it can easily sell to fund any work that is needed but in practice most will get funded by JVs. Again, I know you are an expert but JVs are a common way of funding mining companies and their projects along with project finance.

I know you won't but DYOR."

http://eastafricanminingnews.com/failure-to-regulate-artisanal-mining-in-kenya-hinders-revenue-collection/

Alternatively Bell just treats you like a mug and led you to believe a placing wouldn't happen.

On numerous occasions I've seen you say that Bell assured you that a JV partner would be found in Kenya. If that doesn't come true then you know he telling you what you want to hear and is definitely treating you like a mug.

Helpful I wouldn't be surprised if your fellow CLN holders are losing trust in you.

It seems you were advising them not to convert the CLNs. Which gives the impression you were letting the RRR do a placing first which totally screws up the CLN holders. Now the CLN holders have to sit and suffer and see if those involved in the placing destroy the RRR price.

If you and fellow CLN holders had converted a few weeks back you would have had a free run to sell and make a nice profit. But now you can't because all of the placees have their discounted shares to sell.

Although last week 'Helpful' was adamant the CLN holders would be converting near the cut off date of 19 December I'm now not convinced they will. I think he was just being rampy and assuming the price would be high like it is now come December.

From my understanding of these CLNs it is entirely up to the CLN holders if they want to convert at 0.60p. So the company can never force them to convert. So if come December this share price was near 0.60p then I cannot see the CLN holders converting.

If that happened the CLN holders would have two choices. They either instruct RRR they want paying in full, so RRR would probably need to do a placing to pay them. Or once again they come to an agreement that the CLNs are rolled over for another year but on new terms.

'Helpful' it goes both ways. You was luring PIs to buy in when this price was around 1.15p.

So can they blame you for their losses?

I feel plenty of more fundraises to come.

I don't think what I outlined even scratched the surface. As Menobark pointed out there is also admin costs + any exploration at Kenya or DRC would also cost money. I'm sure lots of other costs too. So lots of money needed.

Below RNS says 3 months after Kenyan licenses are renewed (they were renewed 2 August 2020) RRR must pay Kansai mining $2.5 million in cash. RNS also says Kansai mining will also be given an additional $1 million promissory note which can be cashed 15 months later.

https://www.investegate.co.uk/red-rock-resources--rrr-/rns/progress-report---african-exploration-assets/201806150700024789R/

Below RNS says Slovakian asset due diligence ended 21 September 2020. If asset deal proceeds Red Rock will give seller a total of €350,000 in RRR shares. Also states Red Rock would have to spend at least €100,000 on unnamed expenditures during 2020.

https://www.investegate.co.uk/red-rock-resources--rrr-/rns/option-over-slovak-gold-assets/202009070700071370Y/

Below RNS gives details of the £830,000 that Red Rock owe. Lenders were given £830,000 in loan notes that could be converted into 0.60p Red Rock shares anytime up to 19 December 2020. The £830,000 debt incurs 1% interest each month. So if converted near the 19 December redemption date that would mean £99,600 interest would be added onto the £830,000 debt. So £929,600 could be converted into 0.60p shares. Which according to my calculations would be very near to 155 million additional Red Rock shares that would come onto the market.

https://www.investegate.co.uk/red-rock-resources--rrr-/rns/renewal-of-convertible-loan-notes/201912171658072255X/

Although I suspect it. It would be interesting if you confirmed that you were a company plant who posted on this thread to give a rosey optimistic viewpoint on RRR.

Helpful do Red Rock Resources reward you in some way for promoting them?

Yes I'm sure you are right. I'm not invested here. Next time I'll read the RNS.

Over at RRR their is £830,000 in CLNs that could be converted at a 0.60p share price yet with the RRR price near 0.90p none of the CLN holders are yet converting.
Obviously with that many potential shares the RRR CLN holders need the share price to be way above 0.60p so they could convert and then sell at a profit.

So likewise at Cobr. It needs to be way above 2.30p before they would even think about converting. They do all want to make a big profit here.