27th May 2015 09:48
LONDON (Alliance News) - Red Rock Resources PLC Wednesday said it has received the remainder of the first payment tranche from the sale of its Columbian gold assets earlier in May and said the dispute over two special licenses in Kenya is continuing.
Red Rock shares were up 9.2% to 0.0710 pence per share on Wednesday morning.
The Colombian deal, which was agreed in April and completed in May, led to Red Rock selling its El Limón gold assets for a total of USD5 million to Colombia Milling Ltd, which included USD3 million in future royalty payments.
It will receive the initial consideration in three tranches over the next fifteen months and has a secured promissory note in place of USD1 million.
On Wednesday, Red Rock said it has received the final USD450,000 of the first tranche from Colombia Milling.
Earlier in May, Red Rock had warned the Kenyan Ministry of Mining told the company's local partner, Mid Migori Mining Ltd, that it had terminated two special licenses which led to Red Rock moving to protect its interests.
On Wednesday, Red Rock said the company and its partner have been granted leave from the High Court in Kenya to institute judicial review proceedings, but said the court has maintained the Ministry's decision in the meantime.
By Joshua Warner; [email protected]; @JoshAlliance
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