21st Sep 2015 16:15
LONDON (Alliance News) - Red Rock Resources PLC Monday said it is undertaking a review of staffing levels and functional requirements in order to cut costs in what may be a "continuation of difficult market conditions".
The mining and exploration company said that "substantial measures" have already been taken and that it will release a further announcement detailing these and their effects on the cost structure of the business.
"We have taken and are taking further radical steps to restructure not only our balance sheet but our cost structure. Improvement of our cash flow balances, both by reducing outflows and creating inflows, is a principal objective, since this will cause the market to attribute more value to the strong asset backing of the company and provide a more robust platform for growth and for taking advantage of opportunities that arise in the depressed natural resource space," Chairman Andrew Bell said in a statement.
Red Rock added that it is due to receive its next scheduled payment of USD225,000 from Colombia Milling Ltd for the interests it bought from Red Rock earlier this year, in January 2016.
USD100,000 was already paid in respect of exclusivity periods offsettable against consideration, and USD450,000 was paid at the time of completion. The sum of future payments and royalties payable is USD4.5 million, including a USD1 million note secured over the sold assets.
Shares in Red Rock closed down 11% at 0.0200 pence on Monday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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