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Red Rock Resources raises £300,000 to spend on Jupiter Mines stock

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Red Rock Resources (LON:RRR) has raised just under £300,000 through a subscription of shares to be spent on increasing its stake in Jupiter Mines.

A subscription for 45mln Red Rock shares at 0.66p each by an unnamed “long-term investor” raised £297,000 to cover the costs of the share purchase.

The decision to increase its stake in Jupiter from 0.86% to 1.21% by buying 8mln shares at A$0.056 (at a cost of £261,000) comes despite Jupiter’s plans to delist from the ASX.

The company retains a 0.75% gross revenue royalty over Jupiter’s Mount Ida project in Australia and non-manganese mineral rights over another Jupiter asset.

Red Rock chairman Andrew Bell said: “Since we last sold stock in Jupiter in early July Red Rock's share price has risen nearly 80%, while Jupiter's has declined by over 20% despite announcing major contracts. 

“Jupiter intends to delist, which makes it impossible for some funds to hold, but this is not a consideration for us as whenever we have sold it has been to a major holder, and Jupiter intends to assist buyers and sellers to match transactions after delisting.” 

He added: “The current price we believe is an investment opportunity we cannot match elsewhere and gives us an opportunity to strengthen the company's long-term asset position.”

Red Rock’s shares dipped 3.8% to 0.63p each on the news.


Quick facts: Red Rock Resources PLC

Price: 0.34 GBX

AIM:RRR
Market: AIM
Market Cap: £2.37 m
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