Business
Acquisition of Further Migori
Acquisition of Further Migori.
About this update from Red Rock Resources Plc
[{"type":"text","content":"\n RNS Number : 5065D Red Rock Resources plc 03 December 2009 \n \nRED ROCK RESOURCES PLC\nAcquisition of Further Interest in Migori\nDated: 3 December 2009\nRed Rock Resources plc (\"Red Rock\" or the \"Company\") the mining exploration and development company focussed on advancing iron ore, manganese and uranium projects in Australia and East Africa, is pleased to announce that it has entered into an option to acquire an interest in a further 29,629,000 shares in Kansai Mining Corporation (\"Kansai\" and \"Kansai Shares\"), bringing the number of shares in which it is interested to 39,629,000, or 35.2 per cent of Kansai's issued capital, and making it Kansai's largest shareholder.\nThe option has been granted by a single private seller in consideration for payment of C$360,000 and is exercisable at C$10 at any time prior to the earlier of 11 March 2011 or twenty business days after the Kansai Shares become freely tradeable on the Toronto Venture Exchange by revocation of the cease trade orders issued against Kansai in Canada. These cease trade orders were imposed earlier in 2009 in consequence of Kansai failing to file accounts for its year ended 30 September 2008 within the prescribed time. Kansai is currently preparing accounts for the two years ending 30 September 2008 and 30 September 2009.\nKansai is the Canadian company with which on 14 August 2009 the Company entered into a sale and purchase agreement to acquire up to 60 per cent of the issued share capital of Kansai's wholly owned subsidiary company Mid-Migori Mining Company Ltd (\"MMM\") which owns the beneficial title and mining rights to the Migori Gold Project, 15 per cent upon payment of an initial consideration, and 45 per cent upon completion of a bankable feasibility study.\nThe acquisition, in line with Red Rock's stated intention in its announcement of 30 November 2009 to enhance significantly its attributable interest in the Migori gold belt, will increase Red Rock's interest in Kansai to over 20 per cent., and so constitutes a control bloc under Canadian securities law. Red Rock is however entitled to rely on the exemption from the bid requirements available to a purchaser from five or few...