2nd Mar 2015 18:01
LONDON (Alliance News) - Red Rock Resources PLC Monday said there are "no reasons for further delay" in relation to the company's sale of its interests in the El Limon mine in Colombia, and said it has also raised GBP70,000 after conducting a placing.
Red Rock were originally targeting the sale of its interest in the mine before the end of February, and said it "believes that the intention of all parties is to execute in the shortest possible timeframe, and that there are no reasons for further delay."
Red Rock currently holds just over a 50% stake in El Limon, through the local operator of the mine, Four Points Mining.
In addition, Red Rock said it has completed a placing with clients of Dowgate Capital Stockbrokers Ltd and "others" to raise a total of GBP70,000. The company issued 8.8 million shares at 0.08 pence per share.
The proceeds of the placing will be put toward vendor repayments and working capital, said the company.
"We expect imminent completion of the Colombian sale but given that there will inevitably be some time gap between deal execution and receipt of funds, keeping a prudent level of liquidity in the business while minimizing dilution at these prices by a small fundraising was the prudent course of action," said Chairman Andrew Bell.
Red Rock shares closed down 5.3% on Monday to 0.0805 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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