Mining firm Red Rock Resources (RRR) signed with Cobalt Blue Ltd, a conditional agreement to acquire interests in a project to process copper and cobalt residues near Kolwezi, in DR Congo. The project comprises the Kamirombe 1 and 2 sites, as well as those of Haute Kalumba and Basse Kalumba.
RRR under the agreement made an initial non-refundable payment of $50,000 which gives it 40 days to proceed to due diligence and an exclusivity period of 45 days.
If due diligence is conclusive, the firm will acquire a 26.25% stake in the new jointure established to develop the project.
In return, it will pay $700,000 cash and issue £490,000 worth of shares. It also committed to invest $1.2 million to finance exploration at Kamirombe in the framework of feasibility study. Once completed, the firm will be able to increase its stake in the whole project to 52.5%, paying an additional $1 million.
“This is an opportunity that can add much value to Red Rock. From a technical point of view, this is a potentially low risk and high cash flow project, and we expect to have geologists on site conducting testwork within days,” said RRR’s Chairman.
Listed on the London Exchange, Red Rock Resources detains gold exploration assets in Kenya, Ivory Coast and Ghana, as well as an onshore oil exploration project in Benin.