Red Rock Resources (LON: RRR) and Power Metal Resources (LON:POW) on Friday revealed that their Australian joint venture has been granted another two licences, with the IPO process now set to accelerate.
The Red Rock Australasia joint venture (“JV”) has gold exploration interests in the prestigious Victoria goldfields – the same goldfields as Kirkland Lake Gold’s (NYSE:KL) Fosterville mine.
Fosterville, as the world’s highest grade and lowest cost gold mine, has drawn a great deal of interest to Victoria. This includes from Red Rock Resources and Power Metal, who have 50.1% and 49.9% stakes respectively in the JV.
The two have applied for a considerable licence area, with seven total licences now granted and applications in process for another nine. The latest two licences are Evergreen, covering 484 square kilometres (“sq km”), and the 85 sq km Mt Bute.
The seven licences now cover an 848 sq km exploration area, with Power Metal noting this includes “numerous old mines and workings and identified geological targets”. The presence of old mines and workings is particularly significant for the Victoria goldfields, as Fosterville was discovered after digging deeper at a former gold mine.
As the majority of ground covered by the NI 43-101 technical report has now reached granted status, the IPO process for the Red Rock Australasia JV is set to pick up speed.
Impressively, licence applications are in process for another nine new gold exploration licence areas covering an incredible 1,488 sq km.
Power Metal chief executive Paul Johnson noted that the Evergreen tenement is among the “larger licence applications and sits in an area of particular interest”. As evidence for this, he pointed to “increasing investment by peer companies in project acquisition and exploration”.
On the topic of the JV IPO, he said: “Grant of the two licences moves the IPO process front and centre. We believe that the core interests of RRAL forming the basis for an IPO on the Canadian capital markets represents one of the most comprehensive investment opportunities in the Victoria Goldfields for Canadian and international investors.”
Red Rock Resources chair Andrew Bell said the IPO plans “can finally move up a gear” and called the current tenement package “a strong and competitive investment offering”.
Alongside the update on the JV, Red Rock Resources also gave an update on its interest in Jupiter Mines (ASX:JMS) and Jupiter’s spin-off plans. Red Rock Resources owns around 1% of Jupiter Mines, a manganese producer in South Africa.
Jupiter is to pay a final A$0.02 per share dividend for its year ended February 2021, payable May 27, with Red Rock Resources receiving around £150,000. The Jupiter dividend yield for its financial year is 10.1%, dipping from 15.7% and 22.7% the two years prior as a result of lockdowns.
Additionally, a Jupiter general meeting has now approved a capital reduction, paving the way for the spin-out of iron ore business Juno Minerals on the Australian Stock Exchange.
Bell noted that Jupiter’s yield was in the double digits for the third year in a row and was very pleased with the Juno float.
“This long life, low cost, manganese producer is now distributing out to shareholders its iron ore assets in an ASX float, which for us as royalty holders over the main iron ore asset is a doubly encouraging development,” Bell said.
Author: Anna Farley
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