Business
Proposed Partial Sale of Royalty Interest
Proposed Partial Sale of Royalty Interest.
About this update from Red Rock Resources Plc
[{"type":"text","content":"\n \nRNS Number : 8245W Red Rock Resources plc 06 February 2012 \n \n\nRED ROCK RESOURCES PLC\nProposed Partial Sale of Royalty Interest\nDated: 06 February 2012\n \nRed Rock Resources plc (\"Red Rock\" or the \"Company\"), the gold mining and exploration company with projects in Greenland and Colombia, exploration in Kenya, and interests in steel feed, uranium, and rare earths, announces that it has agreed to sell, subject to due diligence and documentation by the buyer, a 50% interest in the Company's 1.5% gross production royalty over any production from the Mt Ida iron ore project.\n \nAnglo Pacific Group plc, a company listed on the London Stock Exchange Ltd, has released the following announcement: \n \n\"Anglo Pacific Group plc\nProposed Transaction for the acquisition of 50% of the Mount Ida Magnetite Royalty from Red Rock Resources plc\n \nAnglo Pacific Group plc (\"Anglo Pacific\") (LSE:APF) (TSX:APY) announces that it has agreed to a proposal with Red Rock Resources plc to acquire 50% of the Mount Ida 1.5% Gross Revenue Iron Ore Royalty (GRR) currently held by Red Rock Resources plc.\n \nThe acquisition will total US$14 million paid in three instalments as follows:\n \n• Tranche 1: US$6 million on completion and agreement of the terms of the transaction, for a 0.3% GRR.\n• Tranche 2: US$4 million payment for a further 0.225% GRR following the results of a positive definitive feasibility study (DFS), a formal decision to mine and that 20% of the pre-production capital costs outlined in the DFS are provided for. \n• Tranche 3: US$4 million for a further 0.225% GRR following the commencement of commercial production, taking the total to 0.75% GRR.\n \nThe payments are to be made in a combination of cash and Anglo Pacific shares to be determined, subject to settlement and execution of formal documentation, and approval of the London and Toronto Stock Exchanges. \n \nThe Mount Ida magnetite project is located in Western Australia and is being developed by Jupiter Mines Limited (ASX:JMS). The project has a maiden JORC compliant inferred resource of 530 million tonnes at 31.94% Fe, as announ...