23rd May 2006 07:01
Red Rock Resources plc23 May 2006 Red Rock Resources plc Grant of Option over mining tenements Dated: 23 May 2006 Red Rock Resources plc ("Red Rock" or the "Company"), a mineral exploration anddevelopment company focused on advancing iron ore, uranium and manganeseprojects in Australia and East Africa, announced that it entered into an optionagreement on 22 May 2006 with Jupiter Mines Limited ("Jupiter"), a companylisted on the Australian Stock Exchange ("ASX") (the "Option Agreement"), forthe grant of options over its Mt Ida and Mt Hope iron ore licenses in thesouthern Yilgarn region of Western Australia. The consideration for the options is the payment of AUS$40,000 to the Company oncompletion. The option over Mt Hope is for a period of 12 months from the dateof the Option Agreement, and that over Mt Ida is for a period of 12 months fromthe date of final grant of the license, which is expected by the Company to beimminent. During the option periods Jupiter is committed to spend a minimum ofAUS$250,000 on exploration. Jupiter may exercise one or both options, and on doing so will pay a furtherAUS$250,000 in cash and AUS$1,000,000 in new Jupiter shares to the Company. RedRock will in addition be entitled to a 1.5% royalty on production. The Company retains its nearby Mt Alfred license, but Jupiter will for 30months, should the Company decide to sell, have the right to match the saleprice. Jupiter has disclosed in announcements through the ASX that it is currentlydrilling on the nearby Mt Mason property, and that it has signed an MOU withSinosteel Australia Pty Ltd, a subsidiary of Sinosteel Corporation, aBeijing-based company owned by the Chinese state, in relation to a possiblejoint venture over Mt Mason in which Sinosteel Australia Pty Ltd would havemajority ownership. Enquiries: Andrew Bell 07766 474849 Red Rock Resources plc Chairman John Simpson ARM Corporate Finance 020 7512 0191 Ltd Nominated Adviser Ron Marshman / John Greenhalgh 020 7628 5518 City of London PR Limited Public Relations This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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