1st Jul 2009 07:00
RED ROCK RESOURCES PLC
Jupiter Mines Limited: Update
Dated: 1 July 2009
Red Rock Resources plc ("Red Rock" or the "Company") the mining exploration and mineral investment company with interests in iron ore and manganese in Australia and Zambia, and uranium investments in Africa and Australia announces that Jupiter Mines Ltd (ASX:JMS - "Jupiter") has placed 48 million ordinary shares to a new strategic partner to raise AUD 7.81 million.
Jupiter is a junior mining exploration company listed on the Australian Stock Exchange, in which Red Rock has a shareholding of 15.2 per cent following the implementation of the first phase of the proposal from Pallinghurst Resources Australia Limited ("PRAL") and Red Rock as described in the Company's announcements of 10 November 2008 and 9 March 2009. Following the placing by Jupiter to POSCO, Red Rock's shareholding of 38,948,586 shares will represent approximately 13.51% of Jupiter's enlarged issued ordinary share capital.
The announcement by Jupiter states that POSCO Australia Pty Ltd ("POSCO") will become a strategic investor in Jupiter with the placement of 48 million ordinary shares to POSCO at 16.266 cents per share. POSCO is an affiliate of the Pohang Iron and Steel Company, a company registered in the Republic of Korea and one of the largest steel producers in the world.
POSCO has previously entered into a cooperation agreement with Pallinghurst, an existing shareholder of Jupiter, to jointly pursue steel feed projects.
Following the placement, which will raise $7.81 million and is subject to Jupiter shareholder approval, POSCO will hold approximately 16.65 % of the expanded share capital of Jupiter. Upon completion of the transaction, Jupiter will have in excess of $14.5 million in cash to accelerate exploration and development activities at its Central Yilgarn Iron Ore projects and of its Manganese assets.
POSCO has agreed an arms-length off-take agreement with Jupiter for up to 50% of the DSO-grade iron ore production. POSCO also has the right to appoint a representative to the Board of Jupiter following completion of the placement.
Enquiries:
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Andrew Bell |
0207 402 4580 07766 474849
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Red Rock Resources plc |
Chairman
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Peter Trevelyan-Clark / Ben Jeynes
|
020 7489 4500 |
Blomfield Corporate Finance Ltd
|
Nominated Adviser |
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Nick Emerson |
01483 413500 |
Simple Investments Ltd
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Broker |
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Ron Marshman / John Greenhalgh
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020 7011 9411 |
Lothbury Financial Limited |
Public Relations |
Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.
Related Shares:
Red Rock Resources