9th Sep 2013 12:08
LONDON (Alliance News) - Red Rock Resources PLC, the mining and exploration company Monday said that the national work stoppage in Colombia has ended, clearing the way for a visit to its mine by Ashmont Resources Corporation, which is considering making an offer for the mine.
Red Rock also said the offer from a third party, which it didn't name, for a majority stake in Nama Greenland Limited is currently seeking regulatory clearance.
Red Rock, which has an iron-ore project in Greenland, a producing gold mine in Colombia, and advanced gold and copper exploration in Kenya, said that the offer from a third party for the controlling interest in Nama Greenland Limited, a company which it owns a 60% stake in, is awaiting administrative clearance, and is currently being sought from the relevant authority. It said it expects to make a further announcement on the deal next week.
Red Rock also said that the national work stoppage in Colombia, which was affecting the mining industry in the El Limon and El Mango mines, has finally come to an end. It said that Ashmont Resources is preparing to visit the El Limon mine as soon as next week, to update due diligence prior to a potential offer being made for the mine.
The company said the work stoppages were becoming increasingly problematic for its subsidiary Four Points Mining Limited, as violent incidents increased in some parts of the area.
The company said that the cash cost per ounce at El Limon in the final quarter of the year to June 30 fell by 50% to USD964 per ounce, an improvement that has been sustained in July 2013, when cash costs fell to USD560 per ounce.
Red Rock Resources shares were trading 3.8% lower Monday, at 1.24 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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