logo-loader
viewRed Rock Resources PLC

Red Rock reduces losses as gold remains main focus

us_dollar350_551264b9440e5.jpg

A significant reduction in admin expenses helped Red Rock Resources (LON:RRR) reduce losses from operations in its latest half year, it said, adding that gold exploration remained the focus.

The pre-tax loss from continuing operations narrowed to £392,577 to end December compared to a loss of £1.336mln in the comparative period.

The key development in the period was Red Rock's expansion of its Ivory Coast interests by the acquisition of prospective licences.

Exploration kicked off at the Alepe license where results from initial geochemistry over around 350 sq km of ground at the Alepe and Dabakala licences have been received and are being processed. An initial announcement will be made imminently.

Elsewhere, the company is progressing the expected imminent sale of the 50.1% owned Colombian subsidiary.

The firm said it expects gold will remain its primary focus, and Ivory Coast will be the main arena, where there is enough work to be done to keep a company many times Red Rock's size usefully employed, it said.

Earlier, the group told investors it will issue new shares to MG Partners, an affiliate of financier Magma, due to the conversion of loan notes.

It will issue new shares to satisfy $200,000 of the outstanding $535,000 loan, the company said.

These new shares will represent about 4.7% of the company’s share capital.

"Following discussions with Magna about outstanding loan conversion we are pleased to see them converting a significant part of their debt position to equity,” said Andrew Bell, Red Rock’s chairman.

“They are taking on the risks and opportunities of equity and we are taking a further significant step towards our objective of eliminating liabilities from our balance sheet, following the placing last week."

Red Rock raised £1mln through a placing last week, with the proceeds earmarked for gold exploration in Ivory Coast.

Red Rock shares eased 5.56% to 0.085p.

Quick facts: Red Rock Resources PLC

Price: 0.34 GBX

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

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Red Rock Resources PLC named herein, including the promotion by the Company of Red Rock Resources PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Red Rock Resources PLC boss hoping to be cash flow positive by year's end

Andrew Bell, chairman of Red Rock Resources PLC (LON:RRR), is hopeful that the mineral exploration and production company will be ”showing appreciable positive cash flows” by the end of 2016. Bell tells Proactive that if everything goes to plan at Shoats Creek, Red Rock will also “be...

on 1/4/16

2 min read