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Red Rock Resources says Greenland asset sale could be formally signed in August

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Red Rock Resources (LON:RRR) has told investors that the sale of a portion of its 60% stake in Nama Greenland could be formally signed off later this month.

It said that it has been advised, by lawyers acting on behalf of the buyer, that the deal terms have now been approved and initialled.

Formal signing and closing of the deal is expected later in August, it said.

However the AIM quoted firm, which first announced the deal in November, cautioned that: “The parties thus continue to make progress, but Red Rock emphasises that in the absence of definitive signed agreements completion of the transaction cannot be assumed.”

Red Rock also updated on some of the other investments in its portfolio.

It highlighted that Kenya’s new Secretary for Mining has announced a number of new measures which include the revocation of new licences issued after the dissolution of parliament and before the elections held under the country’s new constitution.

This has implications for the Macalder tailings project, in which Red Rock has both direct and indirect interests in.

“Red Rock in August last year submitted an application for a mining license over the small part of the Kenyan licenses covering the tailings, which was stamped as received and is being given due course at the Ministry,” it said in the statement.

“The company understands that any letters in favour of other parties did not constitute licenses, were irregularly issued and have no legal standing under the Mining Act, and Red Rock welcomes these actions by the Ministry.”

Meanwhile, at the gold mining operations in Colombia Red Rock says an illegal stoppage, first announced last month, had not entirely ended, but, the impact on production at the El Limon mine has so far been minimal.

It also highlighted the progress being made by 38.6% owned Australian investee Resource Star, which is currently working to re-launch itself as an oil business.

And, separately, it said it continues its efforts to mediate to find an optimal solution for Ascot Mining, which is currently suspended on the ISDX market following a loan default.

Quick facts: Red Rock Resources PLC

Price: 0.4 GBX

AIM:RRR
Market: AIM
Market Cap: £2.79 m
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