Red Rock Resources plc has entered into two deed agreements following a dispute involving Vector Resources Ltd (VEC) which holds 60% of the Adidi-Kanga gold project in the Democratic Republic of Congo.
ARBITRATION
Chairman Andrew Bell said that the company was “well positioned” to play a constructive role given its familiarity with VEC, which has been in voluntary administration since 10 December 2020, its assets in the DRC, principal lenders, local partner and local agent.
“Should arbitration and litigation have to continue, we have experience and have shown resolve in pursuing disputes in sub-Saharan Africa to a necessary conclusion and are, we believe, good partners.”
Red Rock’s first deed agreement is with the administrators of VEC and the second is with the creditors holding security over VEC’s principal asset, the 3.2 million oz Adidi-Kanga gold project.
The deeds aim to start arbitration proceedings in Paris, continue an existing injunction in the British Virgin Islands (BVI), and allow Red Rock to engage counter-parties in discussions regarding a mediated outcome.
LOANS
Under the agreements, Red Rock will for two years gain the right to acquire US$5.2 million loans of VEC’s secured creditors MEF I and Riverfort Global Opportunities PCC Ltd.
The obligation on Red Rock is US$90,000.