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Red Rock Resources updates on investments in DRC and Jupiter Mines (RRR)
Natural resource development company Red Rock resources (LSE:RRR) gave an update on two of its investments this morning. First is news regarding Red Rocks’ joint venture agreement for the development of cobalt and copper assets in the Democratic Republic of Congo. The company has now paid a second tranche of the consideration for its interest in the project by way of issuing 70m Red Rock shares at 0.7p per share. The payment equates to £490k and the shares issued have 1-for-1 three year warrants exercisable at 1p attached.
Red Rock announced it had made the initial cash payment of $250k in November and a further $250k payment will be made upon completion of the remaining documentation, which is expected early in the New Year.
The company initially announced the joint venture in September 2017, but final amended terms were announced on 30 August 2018. Red Rock will now own 50.1% of a local joint venture company, Musonoi Mining SA on completion.
A final payment of $200k will be made upon confirmation of economic mineralisation to the satisfaction of all parties, or the definition of a compliant Resource at Indicated or above status or of a Reserve, or on the decision to mine. In the latter case, Red Rock has a post-completion obligation to pay $1m if and when commercial production begins.
"The JV partnership comprises of 3 copper-cobalt permits in the heart of the Katanga segment of the Central African Copperbelt. These are the Musonoi deposit, Kamukongo block, and Kasombo South permit.
The Musonoi deposit lies within possibly the most prolific copper-cobalt district within Katanga. The area has been mined for more than 80 years and therefore has very adequate infrastructure. Despite being such a well-established mining area, Katanga still holds delineated resources and target potential mineralization. The Musonoi deposit contains significant gold, palladium and uranium , while the Kamukongo permit lies at the western end of the regional Kansuki and Kamikongwa structural trend that hosts some of the most productive high-grade cobalt-copper deposits in the Katanga Copperbelt.
Andrew Bell, Chairman of Red Rock, comments: "We are forming a very positive impression of the potential from the data we are assembling and look forward to providing the market with further detailed information on our targets and intentions, in particular for early mobilisation on to the Musonoi license."
In a second update today, Red Rock announced that Jupiter Mines has released its quarterly results. Red Rock owns a 0.95% share of Jupiter Mines who disclose an attributable cash position of $96m as of 30 November 2018. Jupiter Mines owns 49.9% of the Tshipi manganese mine in the Northern Cape province of South Africa, which Subject to Tshipi performing as per plan and manganese price holding over January and February 2019, plans to distribute approx. R1 billion ($70m) in dividends to its shareholders.
Andrew Bell, comments: "Jupiter continues to generate strong cash flow and solid results and its distribution policy makes it a valuable high yielding asset for Red Rock. The CIF manganese price achieved remained strong at $6.43 DMTU during the quarter."
Author: Stuart Langelaan
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