Red Rock Resources receives more compensation for DRC joint venture
Shares in (RRR ) jumped today after the natural resource development firm received more compensation for its VUP project in the Democratic Republic of Congo.
Earlier this month, Red Rock obtained an order - Ordonnance No 437/BIL/12/2021 Portant Injonction de Payer - from the Commercial Court in Lubumbashi instructing VUP SA, the company’s partner in the joint venture, to pay $2,505,000 as a principal amount to Red Rock.
It said this represented 50.1% of the payment already made by a third party to VUP SA.
At the time, an audience took place in Lubumbashi at which Red Rock’s claim for interest and damages of $11,000,000 was heard. It said judgement was to be given within eight days.
Commenting at the time of the announcement, Chairman Andrew Bell told investors: “Every local judgement has been in our favour. We are glad to have received further vindication of our position in the Payment
Order from the Court which we announce today, though as we note below there is a difference between getting a judgement and receiving funds.”
Last week, the Commercial Court of Lubumbashi issued an executory judgement ordering VUP SA, the company’s partner in the joint venture, to pay US$2m in damages and costs.
“These awards in our favour of $4,505,000 plus costs are steps in a process, and do not put this money into our account, nor do they represent the totality of our potential claims.
“We now begin to move to the enforcement and extra-judicial phases of proceedings,” added Bell.
In this morning’s statement Red Rock Resources told investors that it expects to announce drilling results from another project in the DRC, Luanshimba, “within the next few days.”
In recent weeks, Red Rock Resources reported “extremely encouraging” results from its first set of results from a recently completed phase 1 RC drilling exploration programme in Kenya.
The Group drilled 20 holes totalling 2093 metres as part of its phase 1 RC Drilling Programme exploration programme in the mid KKM prospect at the Mikei Gold Project (“MGP”) in Kenya.
MGP, which is 100% beneficially owned by Red Rock, comprises two prospecting licences which cover approximately 245 km2, namely PL/2018/0202 and PL/2018/0203, over the Migori Greenstone Belt, and are located along the northern margin of the Tanzanian Craton.
It explained that sampling and logging was done at 1m intervals by its in-house geological team prior to being sent to SGS limited in Mwanza, Tanzania for accredited laboratory assay.
Red Rock reported the results of its first batch of 950 samples from 9 out of the 20 drill holes while the final batch from the Phase 1 drilling samples is awaiting customs clearance.
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