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Red Rock Resources - Option over Slovak Gold Assets

RNS Number : 1370Y
Red Rock Resources plc
07 September 2020
 

 

Red Rock Resources PLC

("Red Rock" or the "Company")

 

Option over Slovak Gold Assets

 

7 September 2020

Red Rock Resources Plc, the natural resource development company with direct and indirect interests in gold, manganese and base metals, announces that it has entered into an option over former gold and silver mining and exploration assets at Zlata Bana, Slovakia (the "Assets"). The vendors of the Assets are Mr Lubomir Konkol and his associated parties including Zdarboh n.o, a non-profit company..

The Assets include a License covering the area which contains old gold mines and a number of mineral-bearing veins mapped at surface, as well as land and buildings.

KEY POINTS

·    €10,000 paid for a due diligence period to 21 September 2020 ;

 

·    Red Rock has made a payment of €23,000 in order to acquire a 50% interest in the Zlata Bana License covering an area of approximately 12 sq km;

 

·    Upon exercise of the Option Red Rock would acquire a 50% interest in the other Assets, including interests in land and buildings, vehicles, and mining equipment, a permit over a mineral stockpile, and mining information and data;

 

·    The consideration for exercise of the Option would be the issue upon the execution of documentation to transfer the interest in the Assets ("Transfer") of €250,000 of new Red Rock shares at an issue price equal to the prior 5 day average VWAP;

 

·    A further issue of €100,000 of new Red Rock shares would occur upon completion of the process of Transfer, at an issue price per share equal to the 5 day prior average VWAP;

 

·    A Joint Venture will be established between Red Rock and Mr Lubomir Konkol;

 

·    Red Rock will be responsible for certain expenditures ("Committed Expenditure") of the Joint Venture in the period after execution of the Option, which is expected to amount to not less that €100,000 in 2020.

 

Red Rock Chairman Andrew Bell comments:

"This is an exciting potential addition to Red Rock's silver/gold pipeline and balances the portfolio in terms of risk and geographic spread. The porphyry and other gold deposits of Eastern Europe have not generally undergone systematic modern exploration, and the historic mining centre of Zlata Bana ("gold mine") in eastern Slovakia, last mined in the 1970s, is a case in point. The Company's management has known this license since owning it as part of a Slovak license portfolio from 2004 to 2006.

Zlata Bana had before its sale been considered the lead asset of this portfolio. We consider that applying modern geochemical and geophysical techniques to this historic asset will open up new exploration possibilities.

In a country where landowner rights have in the past sometimes inhibited exploration, uniting land ownership (where this is not public) with license rights has the potential to create considerable value and shorten the path to production. In Lubomir Konkol the Company has for its prospective partner a local property owner with longstanding mining interests.

Due diligence began with my visit to Zlata Bana early in August and continues."

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

For further information, please contact:

Andrew Bell 0207 747 9990                                                       Chairman Red Rock Resources Plc

Scott Kaintz 0207 747 9990                                                        Director Red Rock Resources Plc

Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396        NOMAD Beaumont Cornish Limited

Mark Treharne 0203 700 2500                                                    Broker Pello Capital Limited

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