Business
Update - Colombia
Update - Colombia.
About this update from Red Rock Resources Plc
[{"type":"text","content":"\n \nRNS Number : 8444X Red Rock Resources plc 11 May 2016 \n\nRed Rock Resources plc\n(\"Red Rock\" or the \"Company\")\n \nUpdate - Colombia\n \n11 May 2016\n \nUpdate on Colombia\n \nFurther to the announcement on 5 May 2016 of the re-start of production at El Limon after a US$ 2.5m refurbishment, Para Resources Limited (TSXV:PBR)(\"Para\") has issued a further release headed \"Para Resources Announces Letter of Intent to Purchase 17,000 Ha of Mineral Rights Surrounding El Limon Mine\".\n \nHighlights\n \n· Para LOI to acquire 17,000 ha of concessions in Segovia Gold Belt, NE Colombia, from Otu Gold, Ltd. at cost of US$1,000,000.\n· Three small operating mines included.\n· Additional sources of feed material to El Limon plant.\n· Rapid payback expected.\n· Mineral rights provide El Limon with sufficient feed to exceed 200 TPD mill capacity.\n· Full statement available on Para's website. Para announcement.\n \nRed Rock Interest\n \n· US$225,000 instalment due to Red Rock in July in respect of 2015 El Limon sale.\n· Royalty income stream to Red Rock of 3% on plant output began 1 May 2016, to be calculated quarterly.\n· Red Rock holds US$1,000,000 promissory note with conversion right. \n \nBackground\n \nPara is listed on the TSX Venture Exchange, and at the closing price on 9 May 2016 had a market capitalisation of CAN $19.0m. On 13 January 2016 Para announced a letter of intent to acquire Colombia Milling Ltd, the acquiror of Red Rock's Colombian interests, and this acquisition has subsequently been completed. Para has recently stated that once steady state production has been achieved, it expects to produce over 20,000 oz of gold per year through the processing plant with a projected all-in sustaining cost of cUS$600 per ounce.\n \nRed Rock Chairman Andrew Bell states: \"Para's last announcement already allowed us to project, once steady state production is reached, and at current gold prices, approximately US$300,000 of annualised royalty income from that part of the planned plant output derived...