Proactive Investors - Run By Investors For Investors

Red Rock Resources confident of getting clean bill of health in Kenya

Red Rock Resources confident of getting clean bill of health in Kenya

Red Rock Resources (LON:RRR) says Kenya remains a good country in which to operate despite an unexpected ministerial investigation into the activities of affiliate company Mid Migori Mining.

An operational update from Red Rock revealed that a report from Kenya’s Departmental Committee for Land and Natural Resources into allegations that Mid Migori Mining was illegally mining gold has been unexpectedly adopted by the Kenyan parliament, triggering a ministerial investigation.

The report made no criticism of Red Rock, the operator of the licences which are situated in the South Nyanza District in south-west Kenya, near Lake Victoria.

Red Rock maintains that the allegations are without foundation and that it, supported by Mid Migori Mining, in which it has a minority stake, has now submitted substantial documentation showing the allegations to be incorrect.

“In Kenya, the report now passes to the Government and administrative arm for the investigation of the matters raised. We are confident in the integrity of these processes, have already produced the necessary evidential material, and Kenya remains a favourable investment environment where arbitrary dispossession on spurious grounds of assets found to have value is not the rule. We are entirely confident that Mid Migori will come out with a clean bill of health once the matters raised are properly investigated and continue to make plans for 2013," said chairman Andrew Bell.

There was better news from another of the company’s affiliate companies, Jupiter Mines (ASX:JSM), in which Red Rock has a 49.9% stake.

Jupiter has successfully shipped its first batch of manganese ore from Port Elizabeth.

Meanwhile, in Colombia, the company interested in buying gold miner Mineras Four Points has asked for Christmas and the New Year off, and wants to resume progress on the transaction in 2013.

Red Rock has a 50.5% stake in Mineras Four Points, which owns and has rights over two gold mines in Antioquia: El Limon and El Mango.

In a separate announcement, Red Rock said it raised £115,000 through a placing of shares at 1.0845p each.

YA Global Master SPV was the buyer, acquiring the shares under the terms of the Standby Equity Distribution Agreement announced on 14 December 2010.

View full RRR profile View Profile

Red Rock Resources PLC Timeline

Related Articles

Chris Giles signs the Kalkaroo Native Title Mining Agreement
January 15 2019
Kalkaroo is Australia’s largest undeveloped open pit copper-gold deposit on a copper-equivalent basis.
San Jose project in Spain
January 29 2019
A scoping study demonstrated the company could produce battery-grade lithium hydroxide from Spanish project.
electicity wires
March 25 2019
'We have four key projects which we are developing in parallel'

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use