Red Rock Resources - now a number of catalysts that could see the shares rocket...

ShareProphets share tips of the year 2021 - No 1 a buy from Gary Newman HERE

Red Rock Resources (RRR) has made an update in relation to its investment in Jupiter Mines (ASX - JMS) and announced a “Right to acquire loans and arbitration funding”. The former notes Jupiter having returned to pre-Covid activity levels, cash generated from operations at Tshipi Borwa manganese mine (Jupiter: 49.9%) in Q3 of A$42.1 million and a return to a 90% dividend payout policy projected for full year. Good news for Red Rock – with a holding in Jupiter valued currently at approximately A$4 million (£2.2 million)...

SHOCKING EXPOSE: The twitter pumping of Trevor Brown in the days before and the day he dumped all his Remote Monitored Systems shares HERE

There is also further potential in a 1.3% gross revenue royalty over the Mt Ida iron ore project, which contains an obligation to purchase 0.45% from Red Rock for $8 million on a definitive feasibility study and decision to proceed and commercial production – there is a targeted spin-off IPO of Jupiter’s iron ore interests within a few months, with it stated “as preparations have continued, conditions in the iron ore market have been improving”. This is still a long shot but with iron ore prices firming it could fly and if it does this on its own would be worth a multiple of Red Rock's market cap.

Neill Ricketts Christmas Carol part 2. From Tom Winnifrith HERE

The “Right to acquire loans and arbitration funding” announcement includes Red Rock funding, for $90,000, the institution of arbitration proceedings at the International Chamber of Commerce in Paris to support the continuation of an injunction which prevents the transfer of shares in the joint venture holding company of a majority holding in the Adidi-Kanga gold project in the DRC away from Vector Resources (in administration). This is re. a contested default notice and the agreement gives Red Rock the right for two years to acquire the loans of the secured creditors of Vector – approximately $5.2 million. Vector has previously announced an Adidi-Kanga gold project JORC Inferred and Indicated mineral resource of 15 million tons at 6.66 g/t, amounting to 3.2 million ounces and Red Rock Chairman Andrew Bell argues; “our familiarity with VEC, as well as its assets in the DRC, its principal lenders, its local partner, and its local agent, mean that we are well positioned to play a constructive role and look forward to seeing the situation develop. Should arbitration and litigation have to continue, we have experience and have shown resolve in pursuing disputes in sub-Saharan Africa to a necessary conclusion”.

ShareProphets share tips of the year 2021 - No 2 a buy from Malcolm Stacey HERE

That includes following recent developments in Kenya and, at a 0.85p share price, the Red Rock market cap is £7.7 million. Already more than justified by the current assets, we continue to await licence grants for ‘hot’ Australian acreage which will trigger progress towards an IPO of those which we believe could well see Red Rock’s interest valued at much more than the current market cap here. Those grants could happen anytime and we believe these shares will be 1.3p+ by Easter but there are now a number of game changers, any one of which could see the shares soar.

This article first appeared on HotStockRockets - to catch the three share tips of the year 2021 from the HotStockRockets team on 30th December for just £5.50 click HERE

Filed under: Red Rock Resources, ShareProphets share tips of the year, Trevor Brown, Neill Ricketts

2020-12-24 10:39:34

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