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Red Rock Resources extends Colombian sale exclusivity period again

Published: 21:39 13 Oct 2014 AEDT

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Red Rock Resources (LON:RRR) has again extended an exclusivity period with a potential buyer of the group’s Colombian gold assets.

The purchaser, Nicaragua Milling Company (NMC), now has until November 10 this year to have final agreements in place for the deal which now has a closing date of November 28.

As noted last month, the reason for the extension was that NMC wants to buy additional holdings in Four Points Mining SAS (FPM) beyond the 50.01% held by Red Rock and a deal to buy 11.2% from a local shareholder is due to complete on Nov 24.

NMC has also entered a binding letter of intent with Toronto listed Prize Mining Corporation to acquire a 61% stake in FPM's main asset, the El Limon mine, following completion of the transaction between Red Rock and itself.

Red Rock chairman Andrew Bell said: "Following NMC's agreement to buy out a minority shareholder in El Limon, we have agreed to extend the exclusivity period until November, with final closing still set for that month.

"At completion NMC is now expected to own 61.2% of El Limon. The efforts made by NMC to secure an additional 11.2% stake and their entering into a derivative transaction with Prize demonstrate clearly their commitment to our transaction."

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