4th Sep 2015 17:22
LONDON (Alliance News) - Red Rock Resources PLC Friday said it has agreed to issue an unsecured convertible loan note of up to GBP250,000 to YA Global Master SPV Ltd.
The notes carry an interest rate of 10% per year and mature in 12 months, and can be converted into shares at any time. The notes fall for repayment on August 31, 2016, if they are not converted.
Red Rock will also issue an additional 208.3 million warrants at an exercise price of 0.036 pence per share to YA Global, transferable over three years.
The proceeds will be used for its gold exploration work in the Ivory Coast and for general working capital purposes.
"A detailed review of the company's operating and overhead cost structure is currently underway in order to create a leaner entity tightly focused on preserving project value for investors amidst difficult market conditions. We will keep shareholders informed of progress as this process develops," said Chairman Andrew Bell.
Red Rock shares closed down 6.2% to 0.0258 pence per share on Friday.
By Joshua Warner; [email protected]; @JoshAlliance
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