Red Rock Resources’ (LON:RRR) associate company Resource Star Ltd. (ASX:RSL) has announced a rights issue to raise A$624,000.
The company, in which Red Rock has a 35% stake, has unveiled a one for one rights issue at 0.4 Australian cents per share.
There is also one free attaching unlisted option for every four new shares issued as part of the offer, which closes on 12 May.
Truestone capital has fully underwritten the rights offer.
Australia-listed RSL was mainly a uranium exploration group, but it has diversified into other areas, such as oil & gas, after a lack of investment in uranium projects.
Chairman Andrew Bell says: “With this financing, the company will, to the extent the rights is not taken up, be joined by other shareholders at RSL.
“These shareholders will, we believe, work with us to identify early transactions that can put new value into RSL, whether within the energy, mining, or indeed technology fields.
“This is only therefore a first step in value creation at RSL, a development necessary for value realisation and in the interest of Red Rock and its shareholders.”