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Sale of Royalty

In brief · summary, not quotable

Red Rock sells Colombian gold royalty to Soma Gold for £1m cash plus share subscription rights.

  • Consideration £1,000,000
  • Additional consideration 200,000 share subscription rights at C$2 per share
  • Royalty held since 2015
  • Book value £1,500,000
  • Estimated USD equivalent c USD1,350,000
Full announcement

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Red Rock Resources Plc, the natural resource exploration and development company with interests in gold, base metals, battery metals, and hydrocarbons principally in Africa and Australia announces the sale of the Company's gold royalty in Colombia.

  • Gold royalty over product of El Limon mine and mill sold back to mine owner Soma Gold Corp. ("Soma").
  • Consideration of £1,000,000.
  • Additional consideration of 200,000 share subscription rights exerciseable for 36 months into Soma shares at C$2 per share.

The additional consideration is upon the same terms as the subscription rights attached to placement shares issued to subscribers to the most recent private placement of Soma on 29th August 2025, including the accelerated exercise provision.

The royalty, which has been held since 2015, and which has not yielded payments to the Company for several years, but is expected to recommence payments later this year, consists of a 3% net smelter return (NSR) royalty up to a maximum of $2,000,000 and a 0.5% NSR royalty in respect of a maximum of a further $1,000,000.

An announcement by Soma of this transaction has been issued to newswire services in Canada on 11th September 2025.

Red Rock Chairman Andrew Bell comments: "The sale of the royalty back to the mine owner gives Red Rock cash to extinguish liabilities and support working capital, consistent with the priorities set out in our announcement of 21st July 2025.

We believe that the price of c USD1,350,000 plus warrants is a fair one, giving the mine owner a discount to the £1,500,000 at which the asset is carried in our books but accelerating the payment to us and removing our exposure to performance risk of the gold assets concerned.

A further announcement will be made upon receipt of consideration.

The Company continues to advance towards final documentation and announcement significant transactions in the Ivory Coast and DRC."

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.

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