1st May 2009 16:14
Red Rock Resources plc
('Red Rock' or 'the Company')
AIM: RRR
Standby Equity Distribution Agreement
01 May 2009
Red Rock Resources plc, the mineral exploration and investment company with interests in iron ore and manganese in Australia and Zambia and uranium in Africa and Australia, is pleased to announce that it has entered into a Standby Equity Distribution Agreement ('SEDA') for up to £3 million with YA Global Master SPV Limited ('YA Global'), which is advised by Yorkville Advisors, LLC, an investment group headquartered in New York and active across North America, Europe and the Asia Pacific region.
Under the SEDA, YA Global has agreed to subscribe in tranches for up to a maximum of £3 million of the Company's ordinary shares of 0.1 pence each ('Ordinary Shares') over a period of up to 24 months from first use of the SEDA by the Company (or if earlier, 32 months from the date of the agreement). Subscriptions will be at a price closely related to market price at the time of subscription and will take place at timings and intervals and in sizes determined by Red Rock, subject to some limitations including marketability which may limit the total amount available under the SEDA.
In the opinion of the directors, the SEDA offers a means of raising funds at a cost competitive with that of alternative equity financing opportunities that are currently available for companies of a similar size to Red Rock. The directors believe that the availability of this additional funding channel enhances the Company's financial security and ability to plan, and will therefore help underpin Red Rock's future growth.
It is expected that the facility arrangement fees payable to advisers and service providers will be settled by the issue of ordinary shares in up to three tranches, of which 2,374,324 Ordinary Shares have today been allotted at a price of 1.2214 pence per share ("Fee Shares").
Application will be made to the London Stock Exchange for the Fee Shares to be admitted to trading on AIM. It is expected that admission will become effective and that trading will commence on 8 May 2009.
Following the issue of the Fee Shares the Company's total issued ordinary share capital will be 444,005,156shares of 0.1 pence each.
There are no new significant shareholders created by the issue of the Fee Shares.
Enquiries:
|
Andrew Bell |
0207 402 4580 or 07766 474849 |
Red Rock Resources plc |
Chairman |
|
Peter Trevelyan-Clark / Ben Jeynes |
020 7489 4500 |
Blomfield Corporate Finance Ltd |
Nominated Adviser |
|
Nick Emerson |
01483 413500 |
Simple Investments Ltd |
Broker |
|
Ron Marshman / John Greenhalgh |
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