2nd Dec 2015 10:29
LONDON (Alliance News) - Red Rock Resources PLC on Wednesday said it now owns 4.05% of the shares in Star Striker Ltd, as well as 5.2 million options exercisable at AUD0.004 per share up until the end of March 2016, following the sale of 32.3 million shares in the Australian associate.
The shares were sold for net proceeds of AUD561,078, equivalent to an average price per share of about AUD1.737 cents, having been valued at AUD226,100 in Red Rocks' books on June 30.
The market value of Red Rock's remaining shares and options in Star Striker was AUD629,370 on Tuesday.
Chairman Andrew Bell said that Red Rock has no intention of selling further shares in Star Striker, and that the Australian associate is expected to progress. "The large proportion of our value represented by this non-core asset required that we rebalance our holdings," Bell said.
"The proceeds of this disposal will enable the company to fulfil key objectives by funding its participation in the Shoats Creek Oil Project [in the US], broadening the asset base and, we expect, generating early cash flow," Bell said.
Shares in Red Rock Resources were up 4.0% at 0.0182 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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