Red Rock Resources Plc
("Red Rock" or the "Company")
Update - Resource Star Limited
01 August 2014
Red Rock Resources plc ("Red Rock"), the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast, is pleased to announce developments at its associate company Resource Star Limited ("RSL" or "Resource Star").
Resource Star, the Australian listed (ASX:RSL) company in which Red Rock has 65.3m shares (a 20.94% holding) and 5.21m options exercisable at $0.004, has secured an exclusive Option to acquire 100% of the issued capital of Australian cloud computing service and infrastructure provider Cloud Lands Digital Fortress Pty Ltd ("Cloud Lands") which is subject to due diligence and shareholder approval at a General Meeting.
Cloud Lands intends to become a provider of highly secure cloud services to the Tier 2 enterprise and SME market. By working with a leading Tier 1 global multibillion dollar IT services and hardware supplier with which it has signed an MOU, Cloud Lands expects to offer a combination of Tier 1 enterprise level support and industry leading cloud hardware and software platforms. They have also signed MOUs with a world leading global multibillion dollar IT networking and computing hardware vendor and the pre-eminent global security equipment and software supplier to offer an integrated and secure enterprise class hardware, software and service solution.
Red Rock and RSL Chairman Andrew Bell, in a statement on this development, says,
"Resource Star faced a problematic future with the uranium industry still out of favour. Several months ago we took executive control and actively sought out key investors and the projects they might bring This Option agreement is the latest milestone in that continuing process There is a gap in the market here that has attracted RSL to Cloud Lands' business model; large cloud service providers offer premium services to Tier 1 companies, but few platforms are on offer to Tier 2 and SME customers, and those that are do not provide the same service level. The business record and connections of the key personnel will give the business in RSL's view a good chance of success in a fast moving marketplace.
According to Forbes*, technology experts Gartner predict 17.7% CAGR for public cloud services in the period 2011 to 2016 to $210B, of which $5.2B will be in Australia. The fastest growing aspects of cloud services are infrastructure as a service (IaaS) at CAGR of 41.3% and platform as a service (PaaS) at CAGR of 27.7%. Cloud Lands is initially focussing on these two key growth areas of cloud services.
This investment represents a material change in the nature of RSL's business, which we wholeheartedly support at Red Rock. RSL's investment gives us a level of diversification and exposure to a different and more popular part of the market. We hope for great things from the Cloud Lands service, and eventually a realisation of the value of our RSL holding."
The full announcement, including key details of the Terms Sheet and more details on Cloud Lands, is available from the ASX here: http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=RSL
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
*Source: http://www.forbes.com/sites/louiscolumbus/2013/02/19/gartner-predicts-infrastructure-services-will-accelerate-cloud-computing-growth/
