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Red Rock Resources backs associate company's change of direction

Published: 16:31 01 Aug 2014 AEST

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Miner Red Rock Resources (LON:RRR) is, indirectly, sticking its finger into the Cloud-computing pie.

The company revealed that Aussie firm Resource Star Limited (RSL), in which it has a 21% stake, has secured an exclusive option to acquire Australian cloud computing service and infrastructure provider Cloud Lands Digital Fortress.

Cloud Lands intends to become a provider of highly secure Cloud services to the Tier 2 enterprise and small-to-medium enterprise (SME) market.

Andrew Bell, who is chairman of both Red Rock and RSL, said: "There is a gap in the market here that has attracted RSL to Cloud Lands' business model; large cloud service providers offer premium services to Tier 1 companies, but few platforms are on offer to Tier 2 and SME customers, and those that are do not provide the same service level.

"The business record and connections of the key personnel will give the business in RSL's view a good chance of success in a fast moving marketplace."

The investment represents a material change in the nature of RSL's business, which Red Rock wholeheartedly supports.

"RSL's investment gives us a level of diversification and exposure to a different and more popular part of the market. We hope for great things from the Cloud Lands service, and eventually a realisation of the value of our RSL holding," Bell said.

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