kosyboy
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Tuesday, November 09, 2010
Red Rock Resources gets massive boost after corporate update
Red Rock Resources (LON:RRR) shares rocketed in afternoon trade after the group announced plans to fast-track a second gold mine in Colombia, and highlighted a substantial resource upgrade at Jupiters newly acquired Tshipi manganese project in South Africa.
The shares were trading up 43 percent in late afternoon deals at around 8.90 pence, off intraday rises of more than 50 percent.
Red Rock also confirmed that associate Jupiter Mines (ASX:JMS) has now completed the deal to acquire a 49.9 percent stake in the massive Tshipi Kalahari manganese project in South Africa. Simultaneously it reported a substantial increase to Tshipis JORC resource.
In Colombia, Red Rock and its associate, Mineras Four Points SA (MFP), have decided to fast-track the development of the Machuca min, bringing gold production online alongside the El Limon mine at the end of December.
Initially Machuca was scheduled for development at a later date, supported by cash-flow from El Limon, but now the companies believe that a simultaneous development would be more efficient.
Red Rock and MFP have arranged a second loan agreement to fund the Machuca development.
It will provide up to 1 million in new financing - with 500,000 in loans and a separate additional draw-down facility.
Red Rock has options over 51 percent of MFPs equity, via the terms of the initial financing deal agreed in June.
Jupiter upgraded the Tshipi resource, with an additional 145 million tonnes at 31.75 percent manganese. The latest resource adds to the existing 163 million tonnes at 37.1% Manganese.
Back in March Jupiter agreed a deal with Pallinghurst Resources (JSE: PGL) to acquire the massive manganese project (163.23m tonnes grading 37.1%), in a A$490m share-based transaction,
Jupiter will issue around 1.1bn new shares to the Pallinghurst co-investors at a price of A$0.2110 per share.
Red Rock now owns a 5.23 percent stake in Jupiter - down from 22 percent - now that the transformational merger is completed.
Also
http://af.reuters.com/article/metalsNews/idAFSGE6A80NU20101109