Red Rock Resources plc has acquired 100% interest in the Migori gold project in southwestern Kenya.
MINERAL RESOURCE ESTIMATE
The company has also appointed CSA Global (UK) to provide a revised mineral resource estimate (MRE) for the project.
This will bring the 1.2 million oz MRE reported in 2013 according to the JORC 2004 code into compliance with the JORC 2012 code and in line with AIM standard.
Based on a transaction in June 2018, Red Rock renewed its licences in August 2020 and has now acquired the remaining beneficial interest in the gold project from a subsidiary of Kansai Mining Corporation Ltd.
TERMS
Red Rock paid Kansai £25,000 with 3,571,429 shares at 0.7p each; a $1m promissory note payable in fifteen months; and granted £500,000 warrants exercisable for 30 months into shares at 0.7p a share.
The company has also issued to Riverfort Global Opportunities PCC Ltd and YA II PN Ltd a total of 16,000,000 36-month warrants in consideration of the extension to existing facilities and grant of a six-month repayment holiday on drawn amounts.
POTENTIAL
Chairman Andrew Bell said that obtaining a 100% interest in 2018 added value to the project and enabled the company to work with a free hand.
“Red Rock has come a very long way since its first modest involvement in Kenya, which was on a farm-in basis, has overcome all vicissitudes, and now controls what we believe to be a significant and potentially expandable deposit.
“Our consultants will immediately begin the work to enable us to declare a compliant resource which we will notify as soon as it is completed.
“This is an important step in our planning process for the next phases of exploration which will be aiming to build on the existing resource ounces and grade.”
ASSETS
Established in 2004, Red Rock now has interests in gold in Victoria, Australia and El Limon, Columbia; copper-cobalt exploration in the Democratic Republic of Congo and a JV in Katanga; onshore oil and gas in Benin; manganese in South Africa.
The company is also reviewing interests in iron in South Africa / Australia) and cobalt-copper-lithium-nickel and further gold in Australia.