Last checked at 25 Nov 2014 11:59
Red Rock Resources Plc
("Red Rock" or the "Company")
Issue of Equity and TVR
25 November 2014
Red Rock Resources Plc, the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast, is pleased to announce that it has raised £275,000 by way of an issue of 163,107,947 new ordinary shares of 0.1 pence each ("Shares") in the Company to YA Global Master SPV Ltd ("Yorkville") under the terms of a SEDA facility at a price of £0.001686 per share (the "Issue").
Following the Issue, Yorkville held a net 143,607,947 Shares representing 6.06% of the Company's total voting rights. The proceeds of the Issue will be applied towards debt reduction and working capital purposes.
Application has been made to the London Stock Exchange for the Shares, which rank pari passu with the Company's existing issued Ordinary Shares, to be admitted to trading on AIM. Dealings are expected to commence at 8.00 a.m. on or around 1 December 2014.
Following the Issue, the Company's total issued ordinary share capital will consist of 2,371,116,172 Ordinary Shares with voting rights. No Ordinary Shares are held in treasury.
The above figure of 2,371,116,172 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.
Company Chairman Andrew Bell comments:
"The recent conclusion of negotiations on the disposal of the Company's gold assets in Colombia gives Red Rock greater certainty on the timing of future inflows of funds. It continues to be our priority to pay down debt and strengthen our balance sheet when possible. The initial payment for Colombia is less than originally anticipated and that payment will be split between December and June 2015. Further, we are anticipating retiring our existing debt facility with Yorkville Advisors later this year.
Placing the Company on a firm financial footing to enable active exploration in 2015 has been a key goal of the Company over the past year. Reducing short term debt to comfortable levels and continuing to explore innovative ways to finance the business during an extended sector downturn remains key to developing shareholder value going forward."
For further information, please contact:
Andrew Bell0207 747 9990 or 0776 647 4849 Chairman Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd
Christian Pickel 0203 128 8208 Media Relations MHP Communications