Published: May 10, 2016 |

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Metal Tiger PLC will stage an investment into resource group Red Rock Resources, which it says will help revitalize the latter.

In a placing, Metal has subscribed for around 29.7mln shares in Red Rock at 0.42p for £125,000. Overall, Red Rock raised gross £407,500, with the directors contributing £35,000.

Metal Tiger will also receive one warrant with a life of 30 months at 0.84p for each Red Rock share purchased.

In addition, under a share swap deal, Metal Tiger will pump in a further £100,000 to acquire an additional 23.8mln Red Rock shares in exchange for £100,000 worth of Metal Tiger shares at 5.5p each.

Following this, Metal Tiger will own over 53.5mln Red Rock shares, or 13.65 percent of Red Rock’s capital.

Red Rock reported net assets of around £7.9mln at the end of last year and a loss for the year to end June 2015 of over £8.4mln.

On the £407,500 placing, Andrew Bell, chairman of Red Rock Resources said it came at a key time and marks the point from which the potential for a sustained recovery in the natural resource sector and for Red Rock Resources becomes more visible.

“Our developing oil interests are designed to cover our day-to-day costs thus making Red Rock self-sufficient at a core level. Our oil revenues are projected to build steadily through 2016, at the same time as gold royalties build in the second half of 2016 and other income streams develop.

“Scheduled payments from last year’s disposal of Colombian gold interests are expected to be a substantial contributor in the second half of 2016. A number of positive developments are being engineered within our existing interests and we are looking forward to reporting this progress across our existing portfolio in the near term.

He added: “We now have strategic financing support from Metal Tiger, who have expressed an interest in working with us to further improve our investment proposition and we expect to pass us new opportunities.

“We welcome this on-going support and will be working with the team at Metal Tiger to accelerate the growth within our business, and growth that adds value for investors.”

In a separate statement, Terry Grammer, chairman at Metal Tiger added: “The incoming cash and liquid shares will help revitalize Red Rock and we will be watching the developments announced by Red Rock with interest over the coming weeks and months.”

Source: (April 29, 2016) Proactive Investors

About Red Rock Resources
Red Rock Resources plc is a mineral exploration and production company primarily focussed on the discovery and development of gold and iron ore. The Company invests in projects and opportunities where it can enhance the value of the assets through exploration, development and corporate transactions.

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