|
Red Rock Resources PLC on Friday announced the sale of its gold royalty in Columbia to the owner of the El Limon mine. Shares in Red Rock were 11% higher at 0.033 pence in London on Friday morning. Red Rock said the royalty, over the product of the mine and mill, has been returned to El Limon’s owner Soma Gold Corp for initial consideration of £1.0 million. Additional consideration consists of 200,000 share subscription rights, exercisable for 36 months into Soma shares, at C$2 or around 106.75 pence each. The London-based, Africa and Australia-focused miner has held the El Limon royalty since 2015. It ‘has not yielded payments...for several years, but is expected to recommence payments later this year,’ Red Rock said. The royalty consists of a 3% net smelter return royalty up to a maximum of $2.0 million, and a 0.5% NSR royalty in respect of a maximum of a further $1.0 million. Chair Andrew Bell commented: ‘The sale of the royalty back to the mine owner gives Red Rock cash to extinguish liabilities and support working capital...We believe that the price of [around $1.4 million] plus warrants is a fair one, giving the mine owner a discount to the [£1.5 million] at which the asset is carried in our books but accelerating the payment to us and removing our exposure to performance risk of the gold assets concerned. ‘A further announcement will be made upon receipt of consideration.’ Red Rock ‘continues to advance towards final documentation and announcement significant transactions in the Ivory Coast and DRC,’ Bell added. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
