Investment and Share Subscription
RNS Number : 4424S
Red Rock Resources plc
07 July 2015
Red Rock Resources Plc
('Red Rock' or the 'Company')
Investment and Share Subscription
07 July 2015
Red Rock Resources plc, the mining and natural resource exploration company with interests in gold in Africa, and investments in other mineral assets, announces an update on Elephant Oil and on fundraising activities.
Investment in Elephant Oil
Red Rock Resources plc is pleased to announce it has given notice of exercise of the option to invest in Elephant Oil Limited ('Elephant'), an oil and gas exploration company focused on West Africa, which was announced on 26 June 2015.
Red Rock has agreed to subscribe for 1,086,956 new ordinary shares in Elephant, at a price per share of 25.3 pence, for an aggregate consideration of £275,000. Red Rock has also been granted the right to invest a further £412,500 in to Elephant within a six month period from today, also at 25.3 pence per share.
Elephant is a privately held independent oil exploration company holding a 100% interest in the production-sharing contract ('PSC') on Block B, onshore Benin, on the prolific West Africa Transform Margin. The block covers 4,500 km2, or approximately two-thirds of the coastal basin, and is one of only two onshore blocks to have been made available by the government of Benin.
Share Subscription
Red Rock is issuing a total of 689,473,706 ordinary shares of 0.01p each ('new Shares') in the Company at a price of 0.0475pper Share (the 'Subscription'). The gross proceeds of the Subscription are £327,500. For every two Subscription Shares, each subscriber will be issued with one warrant exercisable at 0.065p per Share and expiring on 7 July 2017 ('Warrants').
421,052,632 new Shares represent a £200,000 subscription by Elephant Oil Limited, who following the Subscription will hold 7.87% of the enlarged issued capital of the Company. The remaining 268,421,074 new Shares have been placed with institutional and private investors.
The proceeds of the Subscription will fund the Company's investment in Elephant Oil and general working capital.
Andrew Bell, Chairman, states: 'Following continuing discussions with Elephant, Red Rock has determined to press forward with its investment in Elephant's oil exploration activities in West Africa, and consequently to undertake the current funding exercise. We consider that the Elephant team is making rapid progress in working to expand its footprint and add further oil opportunities in West Africa and our own exploration activities in Ivory Coast have given us a strong conviction of the economic prospects and investment merits of the region, as well as of its geological prospectivity.'
Admission and dealings
The new Shares will when issued rank pari passu in all respects with the Company's existing issued ordinary shares. Application will be made for the admission of the new Shares to trading on AIM and it is expected that such admission will occur and that dealings will commence at 8.00 a.m. on 14 July 2015. The Subscription and Placing are conditional on Admission becoming effective.
The total number of voting rights in the Company will therefore be 5,351,498,247. This figure may, following the completion of the Subscription and Placing, be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
For further information, please contact:
Andrew Bell 0207 747 9990 or 0776 647 4849 Chairman Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd.
Christian Pickel 0203 128 8817 Media Relations MHP Communications
This information is provided by RNS
The company news service from the London Stock Exchange
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