Red Rock Resources! Gold Play. Looks good!

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Private investors have fallen in love with RRR

There’s been some very good news today from Red Rock with its purchase of 51%  of  MFP. Red Rock exercised options over 51% of the issued share capital of its partner Mineras Four Points at a reduced initial cost, with remaining payments related to the achievement of key targets.  Now this is a good piece of business for share-holders as RRR have managed to negotiate certain favourable conditions two of which I’ve high-lighted.

1/ US$1,000,000 deferred until MFP has an average ore production of 150 tonnes per day for a continuous 90 day period. 2/A further $998,000 payable only when MFP achieves a net operating profit of US$10,000,000 in one year.

The MFP shares have been acquired through the acquisition of the entire issued share capital of American Gold Mines Limited (“AGM”),

A canny piece of business from RRR and a further pointer as to the direction of this company over the coming year.

Red Rock only decided to exercise its options once MFP  got the mines and plant commissioned, with all parts delivered and operational. “It had been the intention of the Company from the time of executing the Agreement in June 2010 to exercise the options only when it was confident that the mine provided a satisfactory working environment” So said RRR!

Now the above acquisition isn’t Red Rock’s main assets RRR have a portfolio of gold assets Migori gold project in Kenya and the El Limón mine Colombia. Migori has 1.171 million ounces of gold currently defined with 2 million ounces targeted. El Limón is a narrow vein deposit, so lacks a defined
resource, but the mine has been operational for 60 years and RRR believes it can significantly improve the currently inefficient operation.

They have been trending down as of the last month  currently opened up at 10.75p  However they always surge upwards on good news and investor sentiment. Gold-Fever. The market has witnessed them surge up over 20p!

The Board of Directors are well thought of from within the small-caps sections of many Brokerages. And with an increasingly volatile world the flight to gold should help the sp over 2011. They have the potential to hit 50p in any one day depending on the news flow from their main Gold assets. They also have a loyal retail following of investors who are convinced that RRR will be £££’s in the not too distant future and I must say it’s difficult to argue against this given their huge potential over the next year or two!

25P is easily attainable here over the coming weeks that’s in excess of 100% upside. It’s all down to the news time-line and I can’t see any news here other than Good!

Viva!

Daniel

NB**Apology for the RRL ticker got back late from Blackpool and am lacking sleep trying to write two posts at the same time!!!!

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  1. Rick says:

    Dan,
    How come you are quiet on MTA news today?

  2. I think you have something else on your mind BMD – RANGE RESOURCES is RRL – so perhaps there are more important things than RRR on the horizon!?
    Keep up the good work, Champ

  3. shmacks says:

    Dan i think you are too excited and kept typing RRL instead of RRR!

  4. Andy says:

    RRR, not RRL……..

  5. gidrae says:

    RRL or RRR? you mention RRL throughout this article – wrong ticker!!!!

  6. the floz says:

    ticker is RRR

    Thanks for the post!

  7. marab says:

    Didn’t know RRL was so involved with RRR 😉

  8. Cynic says:

    Think you mean RRR, not RRL as you kept calling them in your article.

  9. vilish says:

    Its RRR not RRL. I think you are keep thing about RRL.

  10. Ashy says:

    how can you command such a loyal following whilst consistently making errors as basic as confusing RED ROCK RESOURCES with RANGE RESOURCES?!

    A case of the blind leading the blind?

    • Brokerman says:

      Sorry I was working on two posts at once hence the rrl rrr error.
      And I did get back late last night from Blackpool after the Chelsea magnico performance. Lacking sleep.
      Dan

  11. Dan says:

    dan, did you get your http://www.RNSalert.com 😉

  12. Rick says:

    Hes probably as lost for words as we are at mta s inability to do anything on time !!!

  13. alex says:

    yeah I was hoping mta would go up 50%, I’m a bit dissapointed with 2% to be honest lol

  14. Chris says:

    You’re also forgetting the stake and royalty of Mount Ida, Jupiter Mines which will be worth £100m in the near future.

    Andrew Bell is doing a great job in manouevering these brilliant deals with Jupiter, Cue Resources, Ascot Mining and now Mineras ALONG with their own Colombian gold mines, I see this stock as MASSIVELY undervalued at a market cap of around £100m, I expect atleast a doubling of market cap within a year from now when more and more good news comes through.

  15. Dicky says:

    Dan
    Any thoughts on Bezant Resources BZT just raised cash for a new gold project in Argentina and also said they were in talks to sell its Phillipine project should be £1.50 for that alone yet it languishes at 50p!
    Also your thoughts on MTA news this am not what i quite hoped for.

  16. Mitz says:

    Surely there is some mega value in buying in Regency Mines (RGM) because of this news – worth a mention Dan?

  17. Chris says:

    I agree, please post your thoughts on Bezant if you have time, Dan.

    Bezant is one of those stocks that will spike big on any given day with regards to Mankayan and/or Eureka.

  18. paul says:

    Watch out DAN the spelling police are in full force today.

  19. Angela says:

    Dear Dan, what a disappointment today with Matra do not understand how they can sell stocks with news like this!!
    Greetings
    Angela

  20. Amanda says:

    So pleased to find this site, looking forward to your new website. Complete newbie , bought Sle 32.75 25th Feb so pleased so far, matra down 5%.

    would love your comments re Red Rock versus Regency Mines, Regency seem a much lower entry point, graphs correlate the same. Where do you see Regency going price wise? Risks versus rewards.

    Keep up your marvellous easy to understand work.