Red Rock Resources PLC (AIM:RRR, FRA:R2TA) and Power Metal Resources PLC (AIM:POW, FRA:2M5) are now looking at London as the preferred location for an IPO of their Australian gold joint venture, Red Rock Australasia Pty Ltd (RRAL), rather than Canada.
"A review of potential options for a listing of RRAL has now led to the choice of London as the preferred venue, with the possibility of seeking a trading facility in North America later,” said Red Rock chairman Andrew Bell. “Some listing work has already been done, and this can be used in the current process.”
“Timing, established relationships and familiarity with the processes, short lines of communications at a time of restricted travel, and the existence of suitable comparators were all factors in this decision,” he added.
In March, the companies started the listing process for the joint venture in Canada.
READ: Red Rock and Power Metals press the go-button for IPO of Australian joint venture
RRAL holds extensive gold exploration interests near the historic mining centre of Ballarat in the goldfields of Victoria.
Since February over half the total number of exploration licences applied for by RRAL have been granted, predominantly in the southern Ballarat region, Red Rock said in an update, adding that applications are in process for six other new gold exploration license areas.
“The Joint Venture controls a substantial licence footprint in the Victorian Goldfields and we are intending to cover all areas held with systematic exploration,” said Paul Johnson, chief executive of Power Metal. “We believe there is good potential for major new gold discoveries within areas which have historic gold mines and known gold occurrences but which remain untested using modern exploration technologies.”
“Three exciting targets within the portfolio have now been designated for drilling, with more expected in the near term,” said Johnson.
Geologists have conducted soil sampling, mapping and 3-D modelling on the southern group of licenses and drilling on three targets is expected to begin this November-December.
“Our geological team has been able to work with minimal interruption through the pandemic and their highly competent work is yielding new insights and giving us increasing confidence,” said Bell.
Red Rock owns 50.1% of RRAL, with 49.9% being owned by Power Metal.