Business
Conditional JV to develop cobalt/copper tailings
Conditional JV to develop cobalt/copper tailings.
About this update from Red Rock Resources Plc
[{"type":"text","content":"\n \nRNS Number : 8542R Red Rock Resources plc 26 September 2017 \n\nRed Rock Resources PLC\n(\"Red Rock\" or the \"Company\")\nConditional JV Agreement to Develop Cobalt/Copper Tailings \n \n26 September 2017 \nRed Rock Resources Plc, the natural resource development company with interests in gold, manganese and oil production, announces that it has entered into a conditional agreement with Cobalt Blue Limited, a private Isle of Man company (\"COB\"), to acquire an interest in a Joint Venture company (\"JVCo\") to be newly formed for the exploitation of four or five copper/cobalt tailings near Kolwezi in the Democratic Republic of Congo (\"Agreement\" and \"DRC\"). \nHighlights: \no RRR has made a non-refundable payment of $50,000 for the right to enter into the Agreement\n \no RRR has 40 days for due diligence and an exclusivity period of 45 days\n \no In the event that RRR elects to proceed with the transaction following due diligence and fulfilment or waiver of the conditions, it will acquire 26.25% of JVCo for:\n \no Cash payment of $700,000 \no £490,000 payable in RRR shares (\"Shares\") at 0.65 pence a share, with attached 5 for 3 three year warrants to subscribe for new Shares at 1p (\"Warrants\")\no Commitment by RRR to fund $1.2m of exploration expenditure over 18 months to produce a bankable feasibility study (\"BFS\") on Kamirombe, and thereafter pro rata.\n \no JVCo will hold the rights to exploit the Kamirombe 1 and 2, Haute Kalumba, and Basse Kalumba tailings properties (the \"Project\").\n \no The local partner, Vumilia Pendeza SA,(\"VUP\") in JVCo will have a 20% interest in JVCo carried through BFS and finance-carried to production, and a 1% net smelter return (\"NSR\") royalty.\n \no Following completion of the BFS, RRR will have six months within which to elect to pay $1m to farm in to a further 26.25% of JVCo, bringing its interest to 52.5%. \n \nIt should be noted that the decision as to whether to proceed with the acquisition is dependent on due diligence which will include assessment of the availability of funding.\n \nAndrew Bell, Chairman of Red Rock comments: \"The old, rich copper/cobalt mines on the Congolese part of the Copperbelt have been producing for many decades...