Red Rock Resources buys A$200,000 mobile gold treatment plant, option for 2nd
proactiveinvestors.com.au
Red Rock Resources PLC (AIM: RRR) said it is buying an A$200,000 mobile gold treatment plant and entered an option to buy a second unit.
The contract with Resource Gold Proprietary Ltd is for a turnkey gravity plant and smelter, to be built at the latter’s factory in Perth, Western Australia, and to be delivered in eight weeks.
Red Rock has already paid A$100,000 and will pay the remainder on 50 percent completion of the plant.
A second plant may be ordered on the same terms within two months of fulfilment of the initial order.
Red Rock has invested A$67,000 in Resource Gold and holds approximately 11 percent of the issued share capital. Various Red Rock directors have links to the company.
Red Rock, following the recent disposal of certain iron ore and manganese interests in Western Australia to Jupiter Mines Ltd, intends to continue exploration of its remaining assets in Australia and elsewhere, including its gold interests in Western Australia, it said.
It sees the opportunity presented by this investment in gold treatment plants as complementary to these efforts, as enabling the company to generate significant short term cash flows with low risk, and as steps in the development of an operating and mining function within the company, it added. |
