Red Rock Resources plc
("Red Rock" or the "Company")
Application for the removal of Jupiter Mines listing from ASX
3 October 2013
Red Rock Resources Plc, the mining and exploration company with an iron ore project in Greenland, a producing gold mine in Colombia, and other interests in gold and steel feed, reports that Jupiter Mines Ltd (ASX:JMS)("Jupiter"), a company in which Red Rock has invested, plans to delist from the Australian Stock Exchange ("ASX") for the following reasons:
· There is longer an active, liquid market in Jupiter shares;
· Jupiter has sufficient cash reserves for its project plans over the next two to three years and, therefore, no near term requirement for external funding; and
· Low market capitalisation of Jupiter does not enable value to be maximised as major investment moves into harvesting stage.
Jupiter has announced that the directors have applied to the ASX to delist, and subject to ASX approval and any conditions that may be imposed, will seek a shareholder resolution in favour of delisting, with delisting one month after that resolution is passed.
The principal reasons for delisting are the limited marketability and trading in Jupiter stock, and the lack of any price response to the transformation of Jupiter from an explorer into a significant manganese producer with a production history, and transport and marketing contracts in place. Jupiter has successfully brought a major asset into production and as it now moves to maximise the perceived and perhaps the acquisition value of its underlying assets, the fact that the public market so significantly undervalues that and the other assets of Jupiter is a significant limiting factor.
Jupiter directors concluded that greater value would be realised for Jupiter shareholders after a delisting. The full text of the announcement is available at:
http://www.rrrplc.com/themes/rrrplc_theme/scripts/php/rns_viewer.php?id=21010301
Following sales earlier in the year Red Rock owns 19,674,375 shares in Jupiter (0.86%). The value of Red Rock's holding before the announcement of the planned delisting was AUD 1.53m at a closing price on 2nd October of 7.8c. The price at closing on 3rd October was 5.7c.
Andrew Bell, Red Rock Chairman, comments: "Despite a stream of good news in the months since production began at Tshipi, the Jupiter share price has remained around the current low level. With sentiment towards smaller mining companies continuing to be unfavourable, the Jupiter Board, on which I sit, concluded that the case for delisting, although undesirable in principle, was now unanswerable.
"Minority shareholders will continue to enjoy the same protections post-delisting, and can I believe hope to realise in due course the true economic value of their interest and not the depressed value available in the market."
Enquiries:
Andrew Bell |
020 747 9990 or 07766 474849 |
Red Rock Resources plc |
Chairman |
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Colin Aaronson, David Hignell & Ed Thomas |
020 7383 5100 |
Grant Thornton UK LLP |
Nominated Adviser |
Nick Emerson |
01483 413500 |
SI Capital Limited |
AIM Broker |
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Guy Wheatley |
020 7382 8416 |
Beaufort Securities Ltd |
Joint Broker |
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Rupert Trefgarne |
020 3128 8817 |
MHP Communications |
Media Relations |
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