4th Mar 2014 13:45
LONDON (Alliance News) - Red Rock Resources PLC Tuesday said it has completed a private placing and established an investment facility focused on a new gold exploration project in the Ivory Coast.
The mining and exploration company with operations in Greenland, Colombia, Ivory Coast and Kenya said it completed the placing for 21.1 million shares to Daniel Sklan, a high net worth investor, and will use the net proceeds of the placing for working capital purposes.
Following the deal, Sklan will own 54.1 million shares in Red Rock, which will represent 3.32% of the company's total voting rights.
The company also said it has agreed funding terms with Sklan in which GBP100,000 will be made available specifically to support its gold exploration activities at the Ivory Coast Gold Project.
As part of the deal, Red Rock can draw down funds in tranches with no individual tranche to exceed GBP20,000.
"The 28% fall in the gold price in 2013, and decline in exploration activity in the sector, makes this an opportune time to replenish our project pipeline," Chairman Andrew Bell said in a statement. "Early stage exploration is an area in which we have significant experience, and is also one of the least capital intensive activities on which we can focus our efforts in 2014."
Shares in Red Rock Resources were down 4.5% to 0.377 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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