Red Rock Resources FY losses narrow on the back of lower costs
Mineral exploration firm Red Rock Resources said its pretax loss for the year had narrowed, due to a reduction in costs.
Red Rock Resources
0.05p
16:55 10/05/24
Pretax loss for the year ended 30 June fell from £22.1m to £4.1m, as costs declined and the firm did not book any impairment costs.
Meanwhile, the firm announced that it will receive the $5m it is owed by Nicaragua Milling Company in four separate tranches. In May, the miner and the Nicaragua-based firm agreed a deal for the sale of Red Rock's stake in American Gold Mines, which itself owns just over 50% of Four Points Mining SAS.
Nicaragua Milling Company will be paid the first instalment, worth $1.05m, when the deal is finalised on or before 15 December, while the second tranche, worth $1.07m, will be covered by the issuance of a promissory note by Nicaragua Mining to Red Rock and is payable on or before the date six months after the deal closes.
The third tranche, of $1.25m, will be paid via another promissory note payable on or before a year after the completion, while the fourth tranche of $1.75m will be paid via a 3% annual royalty to Red Rock on gold sales, starting on 1 January 2016.
On Friday, Red Rock shares closed 10.00% up to 0.192p