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Red Rock Resources lends a hand to African Battery Metals

The firm said that if the refinancing deal was approved by ABM’s shareholders, it would receive 20mln shares in the company at a total cost of £100,000 while also receiving 5mln fee shares for its services in connection with the refinancing proposals
Red Rock Resources lends a hand to African Battery Metals
If approved Red Rock will hold a 6.89% stake in ABM

Red Rock Resources PLC (LON:RRR) said that it had participated in a refinancing of African Battery Metals PLC (LON:ABM)

In an update on the position of its licences in Kenya and the Democratic Republic of Congo, the natural resources development firm said that if the refinancing deal was approved by ABM’s shareholders, it would receive 20mln shares in the company at a total cost of £100,000 while also receiving 5mln fee shares for its services in connection with the refinancing proposals, giving it a 6.89% holding in the capital of ABM.

READ: Red Rock Resources reports promising results from sampling at Luanshimba project

RRR’s chairman Andrew Bell would also join the board of ABM as chairman.

On its own activities, the company said following advice not to visit the country after the recent presidential elections due to a “high possibility of civil disorder” and the lack of communications with a suspension of the internet and SMS messaging, it had made “little further progress“ over the last month but would prepare for activities scheduled after the rainy season ends in March.

In Kenya, RRR said it was continuing to pursue the remaining steps for the full restoration of rights over its gold licenses in the country following the resolution of a dispute in October.

Andrew Bell said: "It is a great relief and an important development that the Presidency of the DRC is going to pass relatively seamlessly to a candidate of the opposition, and a sign of the growing political maturity of the country and its neighbours. We have suffered no disruption in our work and currently expect none. We are now quite positive on the prospects for our main Congolese licenses, and so will have to decide where to focus our efforts and whether to seek joint venture partners to progress some of them.”

He added that the company’s involvement with ABM would give the company “exposure at a reasonable cost to ABM's interesting portfolio of assets”.

The Kenyan gold resource, which totals 1.2mln ounces, would be the firms “most immediate priority” going forward, Bell said.

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