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UPDATE: Red Rock Resources surges as NGL stake sale moves a step closer

Last updated: 22:08 11 Feb 2013 AEDT, First published: 23:08 11 Feb 2013 AEDT

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Shares in Red Rock Resources (LON:RRR) shot up more than 12% on Monday morning as the group said the sale of its 51% interest in NAMA Greenland Ltd (NGL) is close to finalisation.

Red Rock said the prospective buyer, International Media Products, has completed technical due diligence and the transaction documentation is in the process of being finalised.

NGL, a joint venture between North Atlantic Mining Associates (NAMA), is a direct owner of the Melville Bugt iron ore project in Greenland. In December of last year Red Rock unveiled a 67mln tonne maiden iron ore resource for the Havik East area of the Melville Bugt project.

Having announced a JORC-compliant mineral resource estimate, Red Rock was then in a positionj to exercise its option in the farm-in agreement to up its stake in NGL to 60% from 25%, which it has duly done. 

Should the sale of the 51% stake go through Red Rock will receive around US$10.7mln and retain a 29% holding in NGL.

Andrew Bell, Red Rock chairman said: "The sale process has gone smoothly and efficiently and we look forward to an early conclusion and to planning 2013 field activities in Greenland, a process that needs to start soon, under the direction of a new partner".

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