Rock Resources amends De la Chevre Noire agreement
Rock Resources Inc RKR
Shares issued 46,851,719 May 26 close $0.19
Fri 26 May 2000 News Release
Mr. Thomas Kennedy reports
On May 25, 2000, Rock Resources and De la Chevre Noire Ltd. (the project vendor) entered into an amending agreement. In consideration of having spent in excess of the required $600,000 (U.S.) in exploration, the amount which was required to be completed by June 30, 2000, under the pre-existing agreement, De la Chevre Noire has agreed to extend the time to complete the balance of the requirements necessary to reach the 50-per-cent vested interest level from Dec. 31, 2000, to March 31, 2001. In the matter of Rock Resources v. Her Majesty the Queen, Rock?s litigation counsel has advised Rook that pursuant to Rock?s obligations under the discovery procedures of the B.C. Supreme Court, a list of documents has been prepared and delivered to the defendant. Rock has also been advised that steps are currently being taken to secure a trial date. Concurrently, Rock will continue to seek a negotiated fair and reasonable settlement as compensation for the expropriation affecting Rock?s mineral claim blocks in British Columbia.
Rock Resources will be exhibiting at the Saskatoon Venture Investment Fair on Saturday, May 27, 2000. Rock Resources will also be exhibiting at the Northeast Investment in Mining Conference in New York, Wednesday, May 31, 2000, and Thursday, June 1, 2000.
Further to the Canadian Venture Exchange notice in Stockwatch May 9, 2000, management is pleased to announce the closing of its convertible debenture private placement announced on Oct. 12, 1999, providing gross proceeds of $900,000. Convertible debenture holders may convert, in whole or in part, to common shares at 50 cents/share if converted in year one, at 75 cents/share in year two, at $1/share in year three, at $1.25/share in year four, and at $1.50/share in year five. Warrants will have a term of two years from the date of issuance which entitles the holder to purchase one additional common share at the price of 50 cents/share during the first year and 75 cents/share during the second year. The proceeds of the financing will be used for development of the Chilean copper-gold project and general working capital. The finder?s fee payable to Epsom Investment Services N.v. Has been approved by the CDNX. This finder?s fee consists of $45,000 in cash and 400,000 share purchase warrants exercisable at a price of 15 cents in year one and 20 cents in year two. Rock Resources and the European investment company have agreed not to pursue the new best efforts European financing to raise up to $900,000 as announced in the news release in Stockwatch Feb. 25, 2000, given current market conditions.
Rock Resources confirms that the Canadian Venture Exchange has approved the granting of incentive stock options announced in the options news release in Stockwatch April 28, 2000, in the amount of 1.2 million shares, exercisable on or before April 28, 2005, at a price of 60 cents per share. Further to the news release in Stockwatch Sept. 23, 1999, the company advises that the hold period with respect to one million shares issued to De la Chevre Noire has been amended to end on May 31, 2000. In early 1997, shortly after Rock Resources entered into the Coiron project agreement, commodity prices for base metals deteriorated substantially. Copper prices subsequently bottomed in the range of 60 to 70 U.S. cents per pound. Since that time copper prices have trended upward. In the May, 2000, Base Metals Quarterly publication, Scotia Capital research analysts forecast prices will average 90 U.S. cents per pound in 2000 and $1.05 (U.S.) per pound in 2001. It also expects above-average growth rates for Western world consumption through 2001 and that demand will outstrip supply. Western world inventories have fallen from the highs of almost eight weeks of consumption in the first half of 1999 to roughly six weeks of consumption at present and should fall to less than four weeks by the end of 2001. Supply to the Western world market should increase only moderately in 2000 and 2001. There are no new mine projects expected to be in commercial production before 2002. The net flow of metal from the former Eastern bloc to the Western world should fall from 1999 levels, as increased exports from Russia should be more than offset by an increase in Chinese imports. Consequently, metal price should move above $1 (U.S.) per pound in 2001. Scotia Capital believes that a price of $1 (U.S.) per pound is sustainable over the long term, for copper, based on trend line growth of Western world consumption of 3.5 per cent and the cost structure of the industry.
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