Red Rock set for stake in Kenyan gold project

17th Aug 2009 09:10

Shares in mining exploration and mineral investment company Red Rock shot up after the company said it may acquire a controlling interest in the Migori Gold Project in Kenya.Red Rock has entered into an agreement with the Kansai Mining Corporation to potentially acquire a 60% stake in Kansai’s wholly-owned subsidiary Mid-Migori Mining (MMM), which owns the beneficial title and mining rights to the Migori Gold Project.The Migori Gold Project has an indicated resource of 1,172,000 ounces gold, with an expectation that this figure may be raised significantly on resumption of the incomplete 2007 drill programme.Red Rock has paid a non-refundable cash deposit of $25,000 as part of the agreement and has until 10 September to complete due diligence on the deal.Once due diligence is completed satisfactorily the company will be allotted 15% of the issued share capital of MMM in return for $0.725m.