Red Rock Resources plc has signed a binding conditional sale for its subsidiary, LacGold Resources SARLU, which owns gold exploration licences and applications in Ivory Coast.
FLEXIBILITY
The company will in exchange receive 13,250,000 shares, with a current value of AUD 715,500 (£350,000) or AUD 0.054 per share, in Australian purchaser Dalaroo Metals Ltd.
Dalaroo will also pay Red Rock a resource definition royalty of AUD 2 per ounce of any future indicated resource.
The sale is subject to due diligence and Dalaroo shareholders’ approval, which are expected before 31 December 2025.
Red Rock said that its December 2024 book value of the assets, which include seven exploration licences over an aggregate 2,491 km2, was £123,863.
“We received three offers for our Ivory Coast licences, and chose Dalaroo as our preferred partner,” added chairman Andrew Bell.
“We see the assets as highly prospective but given their considerable size, and our other commitments, we believed their sale under a partnership model to an aggressive explorer was our best way forward.
“This was a part of our portfolio that was not regarded by shareholders as significant to our prospects.
“With this sale, we receive free trading shares now, giving us flexibility in managing our liquidity, and will participate in future success if exploration leads to an indicated resource or to eventual gold production.”
DALAROO
Dalaroo holds the Namban and Lyons River projects in Western Australia, which, combined, are prospective for base and precious metals as well as rare earth elements.
The company has already agreed to buy a majority interest in a gold application permit in Ivory Coast and is also looking to acquire a polymetal-REE project in Greenland.