Red Rock Resources PLC (LSE:RRR) saw its shares climb on Friday after announcing the sale of its royalty over gold production from the El Limon mine in Colombia to Soma Gold Corp, in a deal valued at £1 million in cash.
Alongside the cash consideration, Red Rock will receive 200,000 share subscription rights in Soma, exercisable at C$2.00 over a 36-month period.
The royalty — held since 2015 but dormant in recent years — was expected to resume payments this year. It comprised a 3% net smelter return royalty, capped at US$2 million, and an additional 0.5% royalty capped at US$1 million.
“The sale of the royalty back to the mine owner provides Red Rock with funds to reduce liabilities and strengthen working capital,” said chair Andrew Bell.
In London, Red Rock shares were trading 15% higher at 0.035p.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply