Red Rock Resources Plc (LON:RRR) said generating cash flows was its focus as it updated on activities and said its acquisition of a stake in Africa-focused gold firm Goldstone Resources Limited (LON:GRL) was now complete.
For its 9.645% stake, the firm issued the vendor Unity Mining Ltd (ASX:UML) with over 21.3mln new Red Rock shares and will also issue it with the same number of options with the right to exercise each into a Red Rock shares at 0.66p for two years.
Goldstone’s main asset is a controlling interest in the Homase/Akrokerri project in the Ashanti Gold Belt in Ghana, which has a JORC Mineral Resource of 602,000 oz of gold at 1.77 g/t.
In oil and gas, Red Rock said revenues were imminent from the Shoats Creek field in Louisiana, USA, where it has a stake and a 20% working interest and a 14.4% net revenue interest.
At the El Limon gold mine in Colombia, which was sold by Red Rock, production has restarted after a refurb and production is expected to reach 200 tonnes per day in July this year after a second ball mill comes online.
Red Rock has a principal payment of US$225,000 in respect of the sale of its Colombian interests due in August this year, and will receive royalties from production at El Limon from this month. It also holds a promissory note from the purchasers of El Limon for US$1mln.
Red Rock chairman Andrew Bell told investors: "We are pleased to have concluded the transaction whereby we and Metal Tiger plc both became substantial shareholders of Goldstone. That company requires new direction, but clearly has great potential and intrinsic upside.
"The focus of Red Rock remains the generation of cash flows from its two key business areas, onshore oil and gas, and gold.
"With the generation of revenues at Shoats Creek having begun, and gold royalty flows about to begin, two important milestones in that process are being passed, and we expect these income sources to build through the remainder of the year.
"Red Rock is also initiating an internal review to ensure that it is properly positioned and structured for the growth ahead."