Last checked at 1 Jul 2016 12:04
Red Rock Resources plc
("Red Rock" or the "Company")
Update on El Limon
1 July 2016
Further to the announcement of 11 May 2016, Red Rock announces an update on its gold investments at El Limon, in Colombia
· Pursuant to the terms of the Promissory Note which was issued by Columbia Mining Limited ("CML") and following recent announcements by Para Resources Inc. (TSXV:PBR) ("Para") in relation to its purchases of shares in CML, Red Rock has notified CML and Para that it considers the conversion of its $1,000,000 Promissory Note into ordinary shares of Para has been triggered, at a price per Para share of 12.5c.
· CML and Para have now informed Red Rock that they do not agree that the conversion has been triggered on the grounds that it is not CML itself which has been listed.
· Red Rock has set in motion the resolution/arbitration process provided for in its Letter Agreement with CML.
As previously announced, a US$225,000 instalment is due to Red Rock from CML in July 2016 in respect of 2015 El Limon sale and a Royalty income stream to Red Rock of 3% on the quarterly output of El Limon plant began to accrue 1 May 2016 with the first payment due August 2016.
Red Rock Chairman Andrew Bell comments: "We are of course delighted to see Colombia Milling concluding the listing of our former Colombia gold assets into a TSX-listed vehicle, Para Resources, and to see the progress in bringing production back on stream at the mine and refurbished plant. We are now seeking to convert our $1m promissory note into equity and have requested CML/Para to nominate a person who will with our nominee seek a resolution of this matter within ten days. Should no settlement occur, the Letter Agreement provides for binding arbitration in London under ICC Rules under English law.
In the meantime, we also look forward to receiving an instalment payment for Colombia and the first royalty payment within the next two months".
For further information, please contact:
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
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd