Convertible Loan Note
RNS Number : 1983Y
Red Rock Resources plc
04 September 2015
Red Rock Resources PLC
('Red Rock' or the 'Company')
Convertible Loan Note
04 September 2015
Red Rock Resources plc, the mining and natural resource exploration company with gold interests in Africa and investments in other mineral assets, announces that it has agreed to issue an unsecured convertible loan note of up to £250,000 ('Convertible Note') to YA Global Master SPV, Ltd. ('YA Global'), which is advised by Yorkville Advisors Global LP ('Yorkville').
The notes yield 10% per annum, have a maturity of 12 months, and are able to be converted into ordinary shares at any time, up until maturity. The conversion price will be determined by a formula equal to 94% of the three lowest daily volume weighted average prices during 15 consecutive trading days beginning on the first trading day immediately following the delivery of a notice of conversion by the bondholder with a price cap of 1 pence. The notes fall for repayment on 31 August 2016 if not previously converted.
Further the Company will issue warrants over 208,333,333 shares in the capital of the Company exercisable at a price of .036 pence and freely transferable for a period of 3 years.
The proceeds of the Convertible Note will be applied to gold exploration activities in Ivory Coast and for working capital purposes.
Andrew Bell, Chairman, comments: 'A detailed review of the Company's operating and overhead cost structure is currently underway in order to create a leaner entity tightly focused on preserving project value for investors amidst difficult market conditions. We will keep shareholders informed of progress as this process develops'
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 8208 Media Relations MHP Communications
This information is provided by RNS
The company news service from the London Stock Exchange
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