Red Rock Resources - Columbia Update
("Red Rock" or the "Company")
Further to the announcement of
· Red Rock gave Promissory Note Conversion Notice to
· CML has not acknowledged Promissory Note Conversion Rights
· Further Dispute exists in relation to Red Rock's Net Smelter Return Royalty ("Royalty")
· Red Rock has now submitted a Request for Arbitration to the
· Red Rock seeks Reliefs including Damages, Declaration of Anticipatory Breach and Realization of Security over AGM Shares
In relation to the
Further, CML/PRI have stated an intention to pay Red Rock's Royalty on gold produced only from gold produced from underground at El Limon and not including gold produced from the mine's processing plant that is derived from material sourced outside the license boundaries. Red Rock is seeking to ensure that the Royalty covers all ores processed by the gold processing plant included in the Sale of the El Limon mine and located at the mine, as originally intended by the parties.
Neither CML nor PRI have acknowledged the existence of and exercise of Red Rock's right of conversion of the Note, and CML/PRI have denied the correctness of the Company's interpretation of the Royalty formula. Red Rock has therefore submitted a Request for Arbitration to the ICC in order to resolve these issues.
Red Rock seeks reliefs including a declaration of anticipatory breach, the realization of its security over the AGM shares by re-registering them into its own name, damages of between
Further updates will be provided in due course.
Red Rock Chairman
CML has completed the plant upgrades taking advantage of the deferred consideration, and PRI, a listed entity in
This is unacceptable to Red Rock and the Company is now pursuing arbitration on these issues through the ICC in
We look forward to an early resolution of these matters and will provide more information as it becomes available."
For further information, please contact:
Scott Kaintz 0207 747 9990 Director
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd
This information is provided by RNS
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Market Cap: £2.13 m
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