www.rrrplc.com
Red Rock Resources plc is a minerals company focussed on the discovery and development of gold, iron ore and other minerals. The principal operational focus of the Company is gold and base metal exploration in Kenya, gold production in Colombia and early stage iron ore exploration in Greenland. The Company’s iron ore interests are also held through its strategic holding in Jupiter Mines Limited (ASX:JMS) and its royalty interest in an iron ore project. Red Rock adds value to its projects through various strategies and realises value through strategies which can include production, sale, joint venture, retention of royalty and spin offs.
Red Rock Resources invests £1.5 mln in Ascot Mining
Red Rock Resources (LON:RRR) has invested £1.5 million into Ascot Mining (PLUS:ASMP), to help it boost production at a Costa Rican gold mine and join the London’s AIM market.
With the new funds in hand Ascot can now fulfil its obligations to the vendor of the Chassoul gold mine and take full ownership of the asset.
Ultimately, the transaction could lead to Red Rock holding around 22 percent of Ascot.
Ascot is in the process of expanding and ramping up production at Chassoul, which is fairly close to the El Limon mine in Colombia which is being expanded by Red Rock.
Red Rock said the two mines are almost identical in terms of size and characteristics.
“Red Rock will benefit by being able to exchange ideas and advice with another group facing similar practical and operational issues,” the company said.
The stock tipped another new high today in light of its latest investment, climbing over 10 percent to trade at 15.5 pence by lunchtime
Yesterday the stock set a record high at 14.75 pence on London’s AIM market as it began new drilling work on a gold project in Kenya and an iron prospect in Australia.
Red Rock shares have had an extraordinary run in recent weeks, rocketing almost 500 percent from 2.5 pence in mid-September.
"Red Rock is delighted to be involved with Ascot in this exciting stage of the Company's development,” Red Rock chief executive Andrew Bell said.
“With these funds in place, Ascot is poised to accelerate its gold production over the coming months and is well placed to add new projects to the already attractive portfolio of gold producing assets."
Chassoul poured its first 10 ounce gold dore bar back almost a year ago, and Ascot has been working to triple the initial production rate up to 1,200 ounces per month.
With the new funds in hand Ascot can now fulfil its obligations to the vendor of the Chassoul gold mine and take full ownership of the asset.
"These fresh funds provide the company with the means to proceed immediately to implement its strategy,” Ascot chief executive David Jackson said.
Jackson added: “This places the company in a position to fully capitalise on its now completed infrastructure and its expanded gold production capability.”
Red Rock invested £1.5 million and SF t1ps invested around £1 million. The loans notes are convertible into new Ascot shares at 20 pence per share.
Additionally, the investors each received warrants to subscribe for 10.5 million new Ascot shares at 20 pence each.
SF t1ps immediately exercised 2.5 million warrants, thus raising a further £700,000 for Ascot Mining.
“Ascot Mining is now capitalised at less than £18 million, with net cash of £3 million. I believe that in six months, Ascot will be generating free operating cash flow of approximately £20 million per annum,” Tom Winnifrith said.
“The maths are compelling.”
Ascot said it has begun talks with brokers that may potentially become their Nominated Advisers (NOMADs) in order for it to join the AIM market as soon as practically possible.
