Cash injection for Red Rock Resources
Article Date: May 07 2009Asset manager Yorkville Advisers has committed £3 million to mining company Red Rock Resources via a standby equity distribution agreement (SEDA).
Under the terms of the deal, Yorkville will provide funds of up to £3 million in tranches in exchange for new equity in the AIM-listed company, on terms related to the market price at each drawdown.
The funding will be used to set up a mobile gold treatment facility, as well as enabling Red Rock, which also has interests in iron ore, manganese and uranium, ‘to react quickly to arising market opportunities’.
Says Andrew Bell, chairman of Red Rock, ‘The SEDA gives us another weapon in our armoury to fund our growing business.
‘The ability to react very quickly to favourable market circumstances at an attractive price and for the least possible dilution is very valuable.’
The terms of the agreement apply over the 32 months from signing, or 24 months from the first advance.
