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11 Nov 2008 07:00
RED ROCK RESOURCES PLC
Issue of Equity
Dated:Ā 11Ā November 2008
Red Rock Resources plc ("Red Rock" or the "Company") the mining exploration and mineral investment company with interests in iron ore and manganese in Australia and Zambia, and uranium investments in Africa and Australia, has issued 116,000,000 new ordinary shares of 0.1p each in the capital of the Company (the "Shares") at 0.5p per Share, to raise Ā£580,000 before expenses, conditional on the Shares being admitted to trading on AIM.
Wills & Co Stockbrokers Ltd haveĀ agreed to subscribe for 30,200,000 Shares at 0.5p per Share. Following the subscription,Ā Wills & Co Stockbrokers LtdĀ will be interested in 30,200,000 Shares, amounting to approximately 6.7% of the issued share capitalĀ of the CompanyĀ as enlarged by the placing.
Equity ResourcesĀ plc,Ā a company of which John Watkins is a director,Ā plc has agreed to subscribe for 43,800,000 Shares at 0.5p per Share. Following the subscription, Equity Resources plc willĀ be interestedĀ 43,800,000 Shares,Ā amounting toĀ approximately 9.7% of the issued share capitalĀ of the CompanyĀ as enlarged by the placing.
Regency Mines plc, a company of which Mr.Ā Andrew Bell and Mr.Ā John Watkins and Mr.Ā Ken Watson are directors,Ā currentlyĀ is interested in 127,350,000 ordinaryĀ sharesĀ representingĀ approximatelyĀ 37.7% of the Company'sĀ currentĀ issuedĀ share capitalĀ and is therefore a related party.Ā Regency MinesĀ plcĀ has agreed to subscribe for 30,000,000Ā Shares at 0.5p per Share. Following the subscription,Ā Regency MinesĀ plcĀ will be interested in 157,350,000 Shares, amounting to approximately 34.7% of the issued share capitalĀ of the CompanyĀ as enlarged by the placing.
Starvest plc, a company of which John Watkins is a director, has agreed to subscribe for 2,400,000 Shares at 0.5p per ShareĀ and will be interested in 8,650,000 ordinary shares amounting to approximately 1.9% of the issued share capitalĀ of the CompanyĀ as enlarged by the placing.
Mr.Ā John Watkins, a director of the Company, has agreed to subscribe for 1,000,000Ā Shares at 0.5p per Share. Following the subscription, he will be beneficially interested in 1,500,000 ordinary shares representing approximately 0.33% of the issued share capitalĀ of the CompanyĀ as enlarged by the placing.Ā John WatkinsĀ is also aĀ director of, but does not control,Ā each ofĀ Regency Mines plc, Equity Resources plc and Starvest plcĀ who will following the completion of the placing beĀ interestedĀ in, inĀ aggregateĀ 209,800,000 ordinary shares,Ā of the CompanyĀ amounting to approximately 46.3% of the issued shareĀ capitalĀ of the CompanyĀ as enlarged by the placing.
The issue was underwritten for a fee of 37,000,000 warrants, each warrant giving the right to subscribe for one ordinary shares of 0.1p in the Company up toĀ 1Ā November 2012 at a price of 0.75pĀ perĀ ordinaryĀ share. Regency Mines plc will receiveĀ 10,000,000 warrants, with the balance being issued toĀ Bruce Rowan, a substantialĀ shareholder in Starvest plc.Ā The issue of the warrants is subject to shareholder approval at the forthcoming Annual General Meeting of the Company.Ā Further the warrants will only be exercised to the extent that exercise does not trigger an obligation to make a mandatory offer under Rule 9 of The Code.
The independent directors, being those directors other than Messrs.Ā Bell, Watkins and Watson, having consulted with Blomfield Corporate FinanceĀ Limited., consider the terms of the placing with and the grant of the warrants to Regency Mines plc to be fair and reasonable insofar as the shareholders of Red Rock are concernedĀ and in the best interest of shareholders of Red Rock as a whole.Ā In providing advice to the Board, BCF Corporate Finance Limited has taken into consideration the independent directors'Ā commercial assessment of theĀ placing and the warrants.
Following the issue of these Shares the Company's total issued share capital will be 453,480,832Ā ordinary shares of 0.1p.Ā Application has been madeĀ made to the London Stock ExchangeĀ for theĀ Shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM.Ā Dealings are expected to commence at 8.00 a.m.Ā onĀ 14Ā November 2008.
Enquiries:
|
Andrew Bell |
0207 402 4580 or 07766 474849 |
Red Rock Resources plc |
Chairman |
|
John SimpsonĀ / Peter Trevelyan-ClarkĀ / Ben Jeynes |
020Ā 7489 4500 |
Blomfield Corporate Finance Ltd |
Nominated Adviser |
|
Nick Emerson |
01483 413500 |
Simple Investments Ltd |
Broker |
|
Ron Marshman / John Greenhalgh |
020 7011 9411 |
City of London PR Limited |
Public Relations |
Updates on the Company's activities are regularly posted on its website,Ā www.rrrplc.com.
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