Red Rock Resources plc said it might have to file for administration if it fails to find sufficient funds to clear its debts.
CREDITORS
Of the total, the company owes £654,000 to Power Metal Resources plc in respect of their joint venture New Ballarat Gold Corporation plc in Australia.
Rescheduled payments include two of £200,000 by 19 September and 14 November, with the £254,449.67 balance payable by 31 December 2025.
Red Rock said that if the money is unpaid, Power Metal may enforce action, including presenting a winding up petition, following a statutory demand for £654,000.
The company also owes £2.15m to “other creditors” mainly one long-term creditor from 2012 relating to work in Greenland.
The sum also includes £372,000 for tax and professional advisers and a £39,000 judgement relating to an overseas inactive subsidiary, which Red Rock partly disputes.
ASSETS
The company could settle its debt from its arbitration claim in the Democratic Republic of Congo after its former partner sold joint venture assets, but it still awaits the outcome of court proceedings.
The claim is for $2.503m plus $2m damages and interest and $7.51m, equal to the 50.01% of the $15m not yet paid by the buyer of the assets.
Red Rock also expects to claim costs, damages and interest.
Income is also due from November on gold royalty from the El Limon mine and mill in Colombia. “Several hundred thousand dollars” are expected in the first 12 months, after the mill returns to production.
The company additionally hopes to sell its Ivory Coast gold assets “quickly” although definitive agreements have yet to be reached.
Red Rock’s options are to sell certain assets, renew its shareholder authorities to issue new equity, raise more funds, reduce its cost base, borrow more money, and to restructure its debt.
The company added: “While the directors consider the company to be currently solvent, should the above measures prove insufficient to meet the company’s financial obligations, then, as noted in the interim statement, the company may be unable to continue trading and would have to file for administration.”