Last checked at 11 May 2023 07:00
Red Rock Resources Plc
("Red Rock" or the "Company")
Issue of Shares and Total Voting Rights
11 May 2023
Red Rock Resources Plc, the natural resource exploration and development company with interests in gold, copper, cobalt, lithium and other minerals, announces that the Company has raised £535,840 before expenses by placing 376,028,070 new ordinary shares of £0.0001 each in the Company ("Placing Shares"), at a price of 0.1425 pence per Placing Share (the "Placing"). The net proceeds of the Placing will be used for the Company's activities in Africa and Australia and for general working capital purposes, pending the anticipated receipt of funds from the DRC.
A fee of 7.5% of funds raised will be paid to Clear Capital Corporate Broking ("CCC") in respect of the Placing. CCC will be entitled to receive warrants exercisable for three years into £107,168 of Shares at the Placement Price.
Red Rock Chairman Andrew Bell comments: "In our three most key areas of operations in Africa, that is to say Kenya, the DRC, and Zimbabwe, we are at critical stages, with renewals, arbitration awards, and immediate pre-production activities under way. A great deal of administrative support and liaison with stakeholders including Government is required, as well as intensified activity on the ground. Meanwhile we have completed an exploration programme in our Australian JV and are planning future activities leading up to a listing.
In an ideal world, we would have received the first funds from the arbitration in DRC by now, and the listing of our investee company Elephant Oil would be further advanced. But we are not in such a world, and despite high gold prices our sector is affected by liquidity conditions in the market as central banks have begun to reverse the decade-long expansion of their balance sheets, inflation persists, and some regional banks in the US have failed.
In order to focus on driving forward our lithium production programme, and free management time for this, we need to hold position or advance conservatively elsewhere, while gradually strengthening our balance sheet. The major liquidity events to which we look over coming months may now include income from operations, and the current financing is a prudent response to current uncertain conditions that puts the company in a much stronger position."
Admission to Trading on AIM and Total Voting Rights
Application is being made for 376,028,070 Placing Shares to be admitted to trading on AIM, the admission of which it is expected on or around 18 May 2023.
Following admission of the Shares, the Company's total issued share capital will consist of 1,958,538,069 ordinary shares, with one voting right per share. The Company does not hold any shares in treasury. Therefore, the total number of voting rights in the Company will be 1,958,538,069 ordinary shares. This figure may be used by shareholders as the denominator for the calculations to determine if they are required to notify their interests in, or change to their interest in, the share capital of the Company under the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority.
For further information, please contact:
Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0207 374 2212 Broker First Equity Limited
Bob Roberts 0203 8696081 Joint Broker Clear Capital Corporate Broking
This announcement contains inside information for the purposes of Article 7 of Regulation 2014/596/EU, which is part of domestic UK law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310) and is disclosed in accordance with the Company's obligations under Article 17.