11 Sep 2017 12:09
Red Rock Resources plc
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("Red Rock " or the "Company")
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Jupiter Mines Buy-Back
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11 September 2017
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Further to the announcement of 31 July 2017, Red Rock announces that Jupiter Mines Ltd ("Jupiter"), an Australian unlisted public company, has announced the details of its planned US$25m distribution to shareholders.
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The full Jupiter announcement may be read on its website www.jupitermines.com.
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Highlights:
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o Distribution will be by means of an equal access share buyback to return US$25m (approximately AU$31.3m) to shareholders ("Buy-Back")
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o Jupiter shareholders will be made an offer to buy back 4% of their Jupiter shares ("Shares") at a set price of US$0.29 (approximately AU$0.36) per share
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o Jupiter's balance sheet will remain strong following the Buy-Back
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o Should current manganese prices hold, Jupiter may receive a further ZAR250m distribution from Tshipi at the February 2018 year end
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o Tshipi has a 100 year mine life, is one of the largest manganese producers, and has one of the lowest operating costs
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o All Jupiter Directors will accept the Buy-Back, as will Red Rock
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o Red Rock holds approximately 1.2% of Jupiter, expects to continue to hold this percentage post the Buy-Back, and will receive in late October- early November an estimated US$300,000 from its share of the Buy-Back
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Red Rock Chairman Andrew Bell states: "Having received a US$655,784.80 distribution in March, this brings our distributions from Jupiter profits in calendar 2017 to nearly a million dollars.
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We now expect our gold royalty receipts to start becoming significant starting with the November payment, and with the Steelmin ferrosilicon plant expected to come on stream around year-end in a strong price environment for ferrosilicon, can reasonably anticipate Steelmin to start contributing to our profits in calendar 2018.
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The repositioning of Red Rock as a cashflow-generative miner, developer and processor continues to advance.
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We expect to report further in due course on progress in the capital value realisation strategies being developed by the shareholders at Tshipi."
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This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014
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For further information, please contact:
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Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc
Scott Kaintz 0207 747 9990 Director Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Neil Badger 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd
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