Red Rock Resources Plc
('Red Rock' or the 'Company')
Kenya update
7 May 2015
Red Rock Resources plc, the mining and exploration company with interests in gold in Africa and investments in other mineral assets,announces an update on its interests in Kenya.
Red Rock's local partner in Kenya, Mid Migori Mining Ltd ('MMM'), has today been advised by the Ministry of Mining of the termination of its Special Licenses numbers 122 and 202 ('the SLs').
MMM intends to challenge this purported termination. MMM also continues to have an application for a Mining License over a part of the SLs, submitted in 2012 pending at the Ministry.
Meanwhile Red Rock through its local affiliate Red Rock Kenya Limited is applying for the ground covered by the SLs. The Ministry has indicated that in considering this application the work and expenditure of the Company since 2009 will be taken into account.
As at 31 December 2014, Kenya-related items were in the books of the Company at a carrying value of approximately £8.5m. In the event that there is no rapid and positive outcome in Kenya, the Company will expect to make a further impairment of these assets at year end.
Andrew Bell, Chairman of the Company, comments: 'I think shareholders are aware that progress in Kenya has for some time been held up by political and other issues, despite the excellent exploration work we had carried out there, and therefore our interests there have not been the focus of our activities. We are sorry at this action taken by the Ministry of Mines towards Mid Migori Mining Ltd, which we do not think is to the benefit of the exploration and mining industry in Kenya. However Red Rock has moved vigorously to protect its interests and will continue to do so. The outcome may yet be favourable.'
For further information, please contact:
Andrew Bell0207 747 9990 or 0776 647 4849 ChairmanRed Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams0207 628 3396 NOMADBeaumont Cornish Limited
Jason Robertson0129 351 7744 BrokerDowgate Capital Stockbrokers Ltd.
Christian Pickel0203 128 8817 Media RelationsMHP Communications