18th Jul 2014 16:26
LONDON (Alliance News) - Red Rock Resources PLC said Friday that it was committed to selling its Colombian interests to Nicaragua Milling Company Ltd, after Nicaragua Milling requested an extension to the exclusivity period of the deal.
Nicaragua Milling requested an amendment to the terms of the letter of intent to extend exclusivity by 30 days to August 11. After this period it would have the option to pay a further non-refundable fee of USD50,000 to initiate a second exclusivity period of 30 days to September 10.
Red Rock said that it is agreeable to the initial extensions in principle, but is currently discussing a modification of the exclusivity provision to allow it additional flexibility during the extended period of due diligence.
The sale is expected to close on or around September 10 should the second exclusivity period not be required.
"We are working closely with NMC to deal with any remaining issues they may have during this period," said Chairman Andrew Bell in a statement.
Shares in Red Rock closed at 0.250 pence Friday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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