Red Rock Resources Plc
("Red Rock" or the "Company")
Strategic Financing
24 August 2016
Placing of Shares
Red Rock Resources Plc, the natural resource investment and development company with interests in gold and oil production, announces agreements as follows:
Highlights:
§ Red Rock to issue 75,000,000 shares in the Company at 0.4 pence, the mid-market closing price per ordinary share on 23 August 2016 being 0.425 pence, to raise £300,000, with 1-for-1 twenty four month warrants at 0.8 pence ("Placing");
§ An existing substantial shareholder, Metal Tiger plc ("MTR") will subscribe for 25,000,000 shares in the Placing, and following its completion will increase its holding in the Company's issued share capital from 13.65% to 16.81%, or 78,571,427 shares ("MTR Subscription");
§ Financing undertaken with high net worth investors in addition to Metal Tiger and will be utilised to refocus the strategic drive of the Company towards advancement of existing hard rock mineral projects and the identification and review of new opportunities;
§ Developing income streams from oil sales, gold royalties and dividends will provide incoming cash flow and defray plc operational costs;
§ MTR intends to exercise its right to nominate a non-executive director to the board of Red Rock.
Comment
The Red Rock Chairman, Andrew Bell, states: "We welcome this demonstration of Metal Tiger's continued support, and that of our other shareholders.
The Company expects its new income stream from oil sales to be augmented by gold royalties and dividends which will defray central plc costs. Having achieved the initial objective for the year of a more secure cost and revenue balance, the Company can now use this platform, in a transformed marketplace, to look more proactively at its existing hard rock mineral projects and its business pipeline which are under review.
In addition with the assistance and input of our increasingly supportive shareholder base, including Metal Tiger, and their access to new high impact opportunities, we have the potential to add material value to the business. We are only just emerging since February from price lows in the mineral sector and it is the board's belief that the majority of upside potential is still available for companies that build their mineral interests at this juncture."
Admission to trading on AIM and Total Voting Rights (TVR)
The Placing Shares, when issued, will rank pari passu in all respects with the Company's existing issued ordinary shares. Application will be made for the admission of the Placing Shares to trading on AIM and it is expected that such admission will occur and that dealings will commence in Placing Shares at 8.00 a.m. on or before 30 August 2016. The Placing is conditional on admission becoming effective.
The MTR Subscription is a related party transaction under the AIM Rules due to MTR being a substantial shareholder as described above. The independent Directors of the Company, having consulted with the nominated adviser, consider that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
Following the issue of the 75,000,000 Placing Shares, the Company will have 467,325,740 ordinary shares of 0.01p each in issue with voting rights. This figure may, following the completion of the Placing, be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules. No ordinary shares are held in Treasury.
Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.
For Further Information Contact:
Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc
Scott Kaintz 0207 747 9990 Executive Director Red Rock Resources Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd.
