16th Dec 2015 13:25
LONDON (Alliance News) - Red Rock Resources PLC, which has interests in gold and oil exploration, on Wednesday said it has repaid and cancelled USD150,000 of its convertible loan with YA Global Master SPV Ltd.
Of the original facility amount of up to GBP250,000, YA converted GBP75,000 in October.
The latest USD150,000 repayment means the total amount outstanding on the facility has been reduced to about GBP80,000.
"We thought it preferable in this market, from the point of view of shareholders, to repay the YA convertible rather than to allow conversion. This we are sure will be a popular decision," Chairman Andrew Bell said.
In addition, Red Rock took note of a statement issued by Jupiter Mines Ltd, in which it owns a 1.2% stake.
That announcement on Tuesday said that Wilco Uys has been appointed as the chief exeuctive at the Tshipi manganese mine. According to that announcement, no medium grade producer can produce manganese profitably at current prices.
Tshipi has therefore decided to reduce exports over the course of the next three months
by at least 35%, and for 2016 by approximately 30%. The mine has begun redundancy discussions affecting 60% of its employees.
"At Jupiter, we were impressed by how the business was able to maintain profitability right up to the summer, and as it has done throughout the management has grasped the nettle and taken early and decisive action to bring that profitability back," Bell said.
"The Tshipi manganese operation has been ahead of the curve rather than behind it at each stage of its response, and we believe will come out of this downturn with its position as one of the lowest cost, longest life, best managed companies in its sector maintained and even strengthened," Bell added.
Shares in Red Rock were down 1.3% at 0.0148 pence on Wednesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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