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Red Rock Resources higher as it updates on progress of Kenya gold project

The firm said it has appointed CSA Global (UK) to provide an updated mineral resource report that will bring a historic 1.2mln ounce mineral resource estimate into compliance with the JORC 2012 code

Red Rock Resources PLC - Red Rock Resources updates on progress of Kenya project

Red Rock Resources PLC (LON:RRR) has appointed mining consultants to provide an updated mineral resource report for its Kenya gold project following a renewal of its licenses at the site in August.

The AIM-listed natural resource developer said as part of a 2018 transaction whereby it acquired the remaining beneficial interest in the project from a subsidiary of Kansai Mining Corporation, the renewal of the licenses triggers the payment of £25,000 to Kansai by the issue of around 3.57mln Red Rock shares at a price of 0.7p each, a 10% discount to Red Rock’s closing price on Tuesday.

READ: Red Rock and Power Metals joint venture company makes further process with licence applications in Australia

The company also said the renewal triggered the issue of a US$1mln promissory note payable in 15 months to Kansai, as well as a grant to Kansai of £500,000 of warrants exercisable for 30 months into shares at 0.7p each.

Red Rock also said it has issued to Riverfort Global Opportunities PCC and YA II PN a total of 16mln thirty-six-month warrants, exercisable as to half at a price of 1.6p each, and as to half at a price of 2.4p each, in consideration of the extension of existing facilities and grant of a six month repayment holiday on drawn amounts.

Meanwhile, the firm said it has appointed CSA Global (UK) Limited to provide an updated mineral resource report for the Kenya project, the purpose of which is to bring a historic 1.2mln ounce mineral resource estimate reported by the company in 2013 according to the JORC 2004 code into compliance with the JORC 2012 code.

This update will enable the resource to be reported as a code-compliant mineral resource estimate in accordance with an AIM Standard.

"Obtaining a 100% interest in 2018 was an important step forward in adding value to the project and enables us now to deal in respect of the project with a free hand. Red Rock has come a very long way since its first modest involvement in Kenya, which was on a farm-in basis, has overcome all vicissitudes, and now controls what we believe to be a significant and potentially expandable deposit”, Red Rock chairman Andrew Bell said in a statement.

“Our consultants will immediately begin the work to enable us to declare a compliant resource which we will notify as soon as it is completed. This is an important step in our planning process for the next phases of exploration which will be aiming to build on the existing resource ounces and grade", he added.

Shares in Red Rock rose 2.5% to 0.8p in early trading on Wednesday.

--Adds share price--

Quick facts: Red Rock Resources PLC

Price: 1.1 GBX

AIM:RRR
Market: AIM
Market Cap: £10.7 m
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