The heads of terms currently contemplate Red Rock acquiring rights to assets including a portion of the Luilu dumps near Kolwezi, but rights to the tailings will need to be proved for the deal to complete.
Once that happens, Red Rock will acquire 50.1% of the joint venture for US$700,00 in cash and £490,000 in Red Rock shares plus warrants.
A further US$1mln is payable when production starts but Red Rock no longer has to fund a bankable feasibility study.
“Provided proof of rights to the resource can be provided at completion, we expect the transaction to proceed," said Andrew Bell, Red Rock’s chairman.
Red Rock paid US$50,000 in September 2017 for the right to enter the agreement and has been carrying out due diligence as there is no geological data reported to an AIM Standard on the assets.