Red Rock Resources
PLC
("Red Rock" or the
"Company")
DRC and Australia Gold Asset
Update
14
February 2024
Red Rock Resources Plc, (AIM:RRR)
("Red Rock" or "the Company"), is a natural resource development
company with interests in gold, base metals, battery metals, and
hydrocarbons principally in Africa and Australia.
This release is an update in relation
to (a) the Company's arbitration in the Democratic Republic of
Congo ("DRC") with respect to the US$10m claim the Company is
pursuing in country for its interest in the VUP copper-cobalt joint
venture, (b) the Company's ongoing review of its Australian gold
operations, and (c) due diligence in relation to a possible
hydrocarbon opportunity in Central America.
DRC
On 5th February 2024 Red
Rock noted that:
(1) The Company's 100% owned subsidiary in the DRC had, obtained
in 2022, an executory judgment for $2.5m (being 50.1% of $5m paid
to local partner by a buyer), and the result of the Arbitration
hearings held in Kinshasa in 2022 in order to obtain $7.5m (being
50.1% of the $15m still to be paid by the buyer) was
pending;
(2) A
draft of the arbitration award had been received by the Company and
awaited finalisation and release;
(3) The hiatus caused by the Presidential and Parliamentary
elections in the DRC was over, and the finalisation of the
arbitration award and payment was resuming; and
(4) A
further updates would be provided as soon as possible.
We have been in constant
communication with our country representative, our lawyer, and our
local partner and matters to resolve the above are progressing. We
hope for a further update by the end of this week or early next
week.
Australia
Our Australian subsidiary, Red Rock
Australasia Pty Ltd ("RRAL") has continued to work on our
two key local gold projects; (a) the Berringa Mine tenements where
the Company has reported an exploration target ranging between
1.275 millions ounces of gold and 171,000 ounces with a grade range
of 5.5 grams per tonne of gold (g/t Au) and 14.2 g/t Au, and (b)
the Ajax Mine tenements with a preferred exploration target of
587,000 tonnes at an estimated grade of 13.1 g/t Au. Further
details on these assets are available on the Company's website with
a new presentation now uploaded.
The Company continues to discuss
with its partner the best structure for going forward with these
exciting assets, noting the elevated gold price in Australian
dollar terms in excess of AUD3,000 per ounce. Sourcing capital to
drill these tenements will be a priority in 2024 to bring one of
these gold targets into JORC-compliant Resource status and listing
RRAL on the ASX is also being considered now to realise value for
shareholders and provide the funds necessary to further advance the
projects.
Central America
A team from the Company has been
conducting due diligence on the private offer of some promising
hydrocarbon assets. An announcement will be made if the matter
progresses.
Chairman Andrew Bell
comments:
"Our representative in the DRC has now had a number of
meetings with advisors from the other side and we are informed by
them that since both sets of principals have wanted the matter
finished for some time, the obstacles to closing the settlement are
being removed from the equation.
We
hope to progress the matter further this week when our local
partner returns to Kinshasa.
In
Australia, the new presentation online for the first time gives a
proper prominence to the two key projects down there, one of which
is capable of potentially being put on a fast track towards
production given a structure which enables it to be given a proper
priority. We are now once again looking at the possibilities of
listing this investment on the ASX.
In
Central America, we are looking at assets which have the potential
to restore growth to our nine year old oil and gas function. We are
always ready to look at highly prospective projects, especially
ones which are held out as potentially cash flow-generative, and
conduct due diligence on many prospects which we never announced.
This one was worth marking as standing out from the crowd, but also
because some expense will be incurred in the due diligence exercise
and should it look like progressing we will make an announcement in
due time."
There is no certainty that any matters will be concluded as we
hope and any actual developments will be notified in accordance
with the AIM Rules at the appropriate time.
For
further information, please contact:
Andrew Bell 0207 747
9990
Chairman Red Rock Resources
Plc
Bob
Roberts 0203
8696081
Broker Clear Capital
Corporate Broking
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