- Red Rock Resources notes that Jupiter Mines, an Australian unlisted public company in which it owns 27.3m shares, has given more details of its planned $55m distribution to shareholders.

Red Rock also updated on the sale of certain assets, including subsidiary American Gold Mines Ltd.

"The distribution, by way of an equal access share buy-back, is being accepted by directors and we expect it to be accepted by the other significant shareholders," said Red Rock's chairman, Andrew Bell.

"Our percentage shareholding will then remain unchanged."

Bell noted that, at the buy-back price, Red Rock's holding was valued at £8.83m, compared with the carrying value in its books of £1.5m.

"The expectation of a further increase in manganese sales, and the possibility of further distributions, sale of the asset or a relisting later in the year, mean that we expect value to continue to increase," he added.

Referring to the sale of certain assets, in a separate statement Red Rock said it intended to pursue its rights in relation to the sale of its gold assets at El Limon in Colombia.

"The sale agreement signed by Colombia Milling Ltd (CML) was intentionally structured in such a way as to allow the new owners to defer a significant amount of the consideration in the form of a Promissory Note and net smelter return royalties, while they immediately invested these savings in the underground mine and in improved gold production capabilities at the plant.

"Were CML to succeed in its stated intention to put them into a public vehicle, Red Rock was to share the benefit from this early liquidity event through a right to convert the Note into shares into the listed entity."

Red Rock said that CML had completed the plant upgrades taking advantage of the deferred consideration, and Para Resources Inc, a listed entity in Canada and investor in CML, has acquired the entirety of the assets sold by Red Rock.

It added that CML and PRI were now refusing to adhere to the clause that would allow conversion of the Note into listed shares while simultaneously interpreting the royalty in a way that would stretch the timeline of payments.

"This is unacceptable to Red Rock and the Company is now pursuing arbitration on these issues through the ICC in Paris to protect its rights and to obtain for our shareholders the full value of the agreements."

At 9:11am: [LON:RRR] Red Rock Resources PLC share price was +0.1p at 0.83p

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