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Red Rock appoints lawyer to help sort out Migori ownership

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Red Rock Resources (LON:RRR) has appointed law firm Ariel Partners to help it simplify the ownership structure of the Migori gold prospect in Kenya.

Red Rock has a direct 15 per cent direct stake in Mid Migori Mining, the Kenyan firm that owns Migori.

The remainder of Mid Migori is owned by Canadian company Kansai. In February, Red Rock acquired options that will give it up to a 37.96 per cent stake in Kansai. 

Red Rock also said it has the right to farm in to a majority position in Mid Migori Mining by performing exploration work and is manager of the Migori project with certain additional rights.

Ariel has been taken on by Red Rock for an initial four months. Kansai has also agreed to deal exclusively with the law firm for three months on issues relating to the Migori project and assets.

Andrew Bell, Red Rock’s chairman, said: "The attribution of a proper value to the Kenyan assets is unlikely until there is a simplification in the holding structure and a unification of the various interests. 

This is what we have for some time sought, and we have every confidence in the capacity of Ariel, whose principal and consultants we have long known, to structure and carry though a transaction".

The Migori Project has a NI 43-101-compliant Indicated Mineral Resource of 1.172m oz of gold. 

Part of the project, the KKM area, has a more recent 2011 JORC-compliant Indicated and Inferred Mineral Resource Estimate of 0.577m oz of gold.

In addition, the Macalder tailings have a 2011 JORC Measured Resource of 68,000 oz of gold.

 

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