18th Sep 2014 15:57
LONDON (Alliance News) - Red Rock Resources PLC Thursday said it has raised GBP167,325 by way of an issue of 76.1 million shares at a price of GBP0.0022 per share, which it will use to develop its gold exploration projects in Ivory Coast and for working capital purposes.
The mining and exploration company said of the total shares being issued under the placing, 18.7 million shares will be shares arising from the issue and immediate conversion of 18.7 million convertible placing shares in the company. The remainder are a direct issue of shares.
Mathew Walker, a director of Resource Star Ltd has subscribed for 63.6 million shares in the placing.
The company also said Thursday that it has acquired the rights to three gold exploration licences in the Ivory Coast.
In a separate note, Red Rock said it has entered into an agreement whereby the right to acquire the entire issue share capital of Nemex Resources CI SARL and Barclay Resources SARL is assigned to Red Rock for a cash consideration of GBP140,000.
The IC Companies, as they are known, are special purpose vehicles which solely own three exploration licences totalling 1,200 kilometre squared and four exploration permits in the Ivory Coast.
All licence areas are underlain by West Africa's highly gold prospective Birimian and Tarkwaian Greenstone belts, in a fast growing region for gold exploration and production, the company said.
The licences are all in areas containing encouraging features for gold exploration, including regional faults, neighbouring reported gold occurrences and similar geological settings to the world class, multi-million ounce deposits in Ghana and Burkina Faso.
Red Rock Resources shares were quoted up 1.1% at 0.227 pence Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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