19th Mar 2015 12:28
LONDON (Alliance News) - Red Rock Resources PLC said it has raised GBP1.0 million through a placing of over 1.5 million shares at 0.065 pence per share with clients of Cornhill Capital Ltd, and said it will use the funds for exploration activities in the Ivory Coast, and fully settling its existing debt facilities.
The GBP1.0 million raised is before expenses, and will be used to repay GBP442,128 toward its debt facility with YA Global, and fully settle the GBP400,109 owed to UKBN under a separate facility provided to the company.
"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. The transformative effect of that on our balance sheet gives the company greater stability, removes a potential overhang of stock, and provides working and exploration capital beyond any receipts from the expected sale of the Colombian assets," said Chairman Andrew Bell.
"This move also enables us to achieve a key objective in our repositioning of the company within the sector, and repay completely all outstanding Yorkville debt facilities as well as the corporate bonds issued by UKBN in 2014," he added.
Bell also reiterated that it is still intending on completing the disposal of its Colombian assets, "which appears to be close to execution", he said.
Last Friday, Red Rock said the sale of the El Limon mine would be completed before the end of March 20. The deal was originally expected to be completed before the end of February but was delayed.
In addition, Red Rock said MG Partners II Ltd has converted USD7,500 of its USD550,000 unsecured convertible notes which are due for repayment on January 1, 2016, into 7.6 million shares at a price of 0.066554 pence.
Following the conversion, MG Partners now holds its first 7.6 million shares in the company, which represents 0.1890% of the company's issued share capital.
The company also said that Cornhill has become its joint broker following the deal.
Red Rock shares were up 1.6% to 0.0762 pence per share on Thursday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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