Red Rock Resources Plc
("Red Rock" or the "Company")
Issue of Convertible Note
30 April 2014
Red Rock Resources plc, the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast, announces that it has agreed to issue an unsecured convertible loan note of £550,000 ("Convertible Note") to YA Global Master SPV, Ltd. ('YA Global'), which is advised by Yorkville Advisors LLC ('Yorkville').
The notes yield 10% per annum, have a maturity of 12 months, and are able to be converted into ordinary shares at any time, up until maturity. The conversion price will be determined by a formula equal to 94% of the three lowest daily volume weighted average prices during 15 consecutive trading days beginning on the first trading day immediately following the delivery of a notice of conversion by the bondholder with a price cap of 1 pence. The notes fall for repayment on 29 April 2015 if not previously converted.
Of the total proceeds, £90,000 will be withheld by YA Global and released to the Company in tranches of £45,000 in May and June respectively provided that all shares due to be delivered to YA Global have been delivered by these dates.
The proceeds of the Convertible Note will be applied to debt reduction and to working capital purposes.
Company Chairman Andrew Bell comments:
"This fundraising substantially completes the deleveraging efforts initiated by the Company in 2013. This effort, while challenging at times, has improved the Company's current financial position. Along with the exciting exploration activities in Ivory Coast on the horizon, Red Rock retains numerous potential value-enhancing projects and investments in its portfolio, which it will continue to seek to monetize in 2014."
For further information contact:
Andrew Bell0207 747 9990 or 0776 647 4849 Chairman Red Rock Resources plc
Colin Aaronson / David Hignell 0207 383 5100 NOMAD Grant Thornton UK LLP
Nick Emerson01483 413500 Broker SI Capital Ltd.
Saif Janjua0207 382 8416 Joint Broker Beaufort Securities Ltd
Rupert Trefgarne0203 128 8817 Media Relations MHP Communications
