Last checked at 12 Aug 2010 12:41
RED ROCK RESOURCES PLC
Approval of Jupiter Mines transactions
Dated: 12 August 2010
Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Kenya and Colombia, and interests in steel feed and uranium, announces that the Company's associate Jupiter Mines Limited ("Jupiter" or "JMS") held an Extraordinary General Meeting in Perth, Western Australia today at which both resolutions were approved on a show of hands. Red Rock voted in favour of the resolutions.
The resolutions were to approve the acquisition by Jupiter of a 49.9 per cent interest in the Tshipi manganese project in South Africa from the Pallinghurst consortium, the raising of AUD5 million, and the issuance of new Jupiter shares in respect of these transactions, which are expected to complete shortly.
Under the terms of the acquisition, Jupiter acquires a 49.9% interest in the Tshipi project for a consideration of AUD245 million, and assumes debt of approximately AUD10.2 million (the "Tshipi Acquisition"). Jupiter will also have certain rights in relation to the project under a management agreement entered into between the Pallinghurst consortium and the other partners in Tshipi. The Tshipi open-pit manganese project has a SAMREC/JORC Resource of 163 million tons at 37 per cent manganese, of which 101.4 million tons is Inferred and 61.8 million tons is Indicated. The tenement has further potential resource.
The calculated resource has been the subject of a feasibility study in respect of 62 million tons, and on the basis of an approximately 2 million tons per annum production over a period of 28 years. The development cost of the project is up to AUD200 million, with a completion time from decision to mine of around two years, and Tshipi is expected by Jupiter to be in the lowest quartile by cost of production.
As a result of the transactions, the issued capital of Jupiter will increase from 369,786,471 shares outstanding to 1,602,150,501 shares outstanding. Red Rock holds 83,734,165 shares and consequently its shareholding in Jupiter will decline from 22.64 per cent before the transactions to 5.23 per cent afterwards. During 2010 Red Rock has made ASX on market sales totalling 9,570,000 JMS shares for a total consideration of AUD2,283,802 (approximately £1.34 million). The proceeds of these sales have been applied to the Company's general working capital requirements.
Mr Andrew Bell, the Chairman of Red Rock, comments that: "Today's vote approves a transformative transaction for Jupiter. This is a change in scale, but it is not likely to be the last change in scale, as Jupiter has ambitions to become a major steel feed company. With Tshipi manganese and the Mt Ida iron ore project, Jupiter has two major potential assets, with Oakover manganese making up a third. Organic growth as well as growth by acquisition should be expected. Red Rock remains fully supportive of Jupiter's strategy and has no current intentions of further JMS share sales."
Enquiries:
| Andrew Bell
| 0207 402 4580 or 07766 474849 | Red Rock Resources plc | Chairman |
| Sandra Spencer
| 0207 402 4580 or 07757 660 798
| Red Rock Resources plc | Public and Investor Relations |
| Peter Trevelyan-Clark/ Ben Jeynes
| 020 7444 0800 | Religare Capital Markets | Nominated Adviser |
| Nick Emerson
| 01483 413500 | Simple Investments Ltd | Broker |
Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.
Further information on Jupiter:
Jupiter Mines Limited is an ASX listed (ASX: JMS) minerals exploration company whose principal assets prior to the Tshipi Acquisition were in the Oakover Manganese Project and the Central Yilgarn Iron Project in Western Australia. At its half year ended 31 December 2009, Jupiter had unaudited net assets of AUD 30.377 million and reported a loss from ordinary activities before income tax of AUD 1.177 million (audited year ended 30 June 2009 net assets AUD 20.549 million, loss before income tax AUD 10.190 million). In its mining exploration entity quarterly report filed with ASX on 29 July 2010 in respect of the quarter ended 30 June 2010 Jupiter reported unaudited operating and investing cash outflows for the 12 months to 30 June 2010 of AUD 7.635 million.
Further information is available on the JMS website at www.jupitermines.com.