Business
Conditional agreement, Australian gold subsidiary
Conditional agreement, Australian gold subsidiary.
About this update from Red Rock Resources Plc
[{"type":"text","content":"\n\nRed Rock Resources PLC\n(\"Red Rock\" or the \"Company\")\nHeads of Terms Signed\nConditional Agreement to take 100% ownership of Australian Gold Subsidiary\n \n13 March 2024\n \nRed Rock Resources Plc, the natural resource development company with interests in gold, base metals, battery metals, and hydrocarbons, principally in Africa and Australia, announces that it has entered into conditional Heads of Terms (\"HoT\"), under which it would, subject to due diligence and funding, board approval, and any shareholder approvals required, acquire the 49.9% beneficial interest in Red Rock Australasia Pty Ltd (\"RRAL\") not already owned, and would become the 100% beneficial owner of RRAL (\"Acquisition\"). The HoT is subject to board approval of both parties, shareholder and regulatory approval (as required), and is subject to contract.\n \nCurrently Red Rock owns 50.1% of New Ballarat Gold Corporation Plc (\"NBGC\"), and Power Metal Resources Plc (AIM:POW)(\"POW\") owns 49.9% of NBGC. NBGC in turn acts as the holding company of RRAL, of which it owns 100%.\n \nUnder the Heads of Terms, Red Rock would upon fulfilment of the conditions, acquire the entire interest of POW in the share capital of NBGC, as well as the benefit of any shareholder loans of POW to NBGC or RRAL, for an aggregate consideration of £1,500,000 in fixed and contingent payments (the \"Consideration\").\n \nThe principal assets of RRAL are 16 gold exploration licences in the State of Victoria in Australia, together with some permitted areas of State land within them, totalling 2,517 sq km, and a 560 sq km licence in Southern Australia. As Red Rock owns a controlling interest in NBGC, all relevant developments and information in relation thereto has been notified by Red Rock and details are provided on the Red Rock website in accordance with the AIM Rules.\n \nRed Rock Chairman Andrew Bell states: \"We have had a successful collaborative relationship with Power Metal Resources since we began the development of Red Rock Australasia into a company specialising in gold exploration in Victoria. Recent drilling results at Berringa have shown that the next step should be to push forward a process that could lead to early production, and the parties have decided that their interests will best be served at this stage by concentrating o...