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Red Rock Resources strengthens balance sheet with share issue

Red Rock Resources strengthens balance sheet with share issue

Red Rock Resources (LON:RRR) has raised £1mln through a placing of shares at 0.065p a throw.

Funds from the share issue will be used for gold exploration in Ivory Coast and to take £842,237 of debt and convertible debt off the balance sheet, with the company settling its obligations to finance house Yorkville and the UK Bond Network.

The placing was conducted by Cornhill, Red Rock’s new joint broker.

“"We were given the opportunity to place stock for cash to a number of new high net worth investors, and repay in their entirety the loan and convertible loan facilities from our two major finance providers,” revealed Red Rock’s chairman, Andrew Bell.

Bell said the effect on the company’s balance sheet would be transformational and would remove a potential stock overhang.

“Our focus on Ivory Coast exploration means that we need to schedule and organize our activities there for the remainder of 2015, and we will now have the flexibility to do this immediately,” said Bell.

“We caution that this decision should not be interpreted as indicative of any change in our view as to the likelihood of the completion of our Colombian asset disposal, which appears to be close to execution with additional updates to be released as appropriate,” he added.

Shares in Red Rock climbed 11.9% to 0.0839p following the announcement.

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