18th Feb 2015 12:24
LONDON (Alliance News) - Red Rock Resources PLC shares dropped Wednesday after it said the proposed acquisition of Cloud Lands Digital Forest Ltd by Resource Star Ltd, in which Red Rock holds a 15.2% stake, will not proceed after both parties mutually agreed to terminate the deal.
Red Rock shares were down 20% to 0.0918 pence per share following the announcement Wednesday afternoon.
Resource Star had exercised an option to acquire Australian cloud computing service and infrastructure provider Cloud Lands in November, and the deal was subject to Resource Star raising AUD3.5 million in capital and securing the necessary approvals from Australian regulators.
"The management of both Resource Star and Cloud Lands mutually agreed that as all conditions precedent had not been satisfied as at February 6, 2015, it was best to terminate the original agreement," said Red Rock.
"The board of Resource Star is currently reviewing a number of alternative investment opportunities with the intention to acquire an asset that will maximise shareholder value in the current market conditions," the company added.
In addition, Red Rock said the company's sale of its interests in the El Limon gold project in Colombia is being finalised, and said samples from its Dabakala and Alepe gold projects in the Ivory Coast are undergoing chemical analysis, which will be completed shortly, it said.
By Joshua Warner; [email protected]; @JoshAlliance
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