Red Rock Resources PLC (LON:RRR) has updated investors on the spin-off plans for its interest in Jupiter Mines Ltd (ASX:JMS), as well as ongoing progress at Red Rock Australia Ltd (RRAL), its joint venture company with Power Metal Resources PLC (LON:POW).
Regarding Jupiter Mines, Red Rock said the final dividend for the firm for the year ending February 28, 2021, of A$0.02 per share will be payable on May 27, from which Red Rock will receive around GBP150,000.
The firm added that Jupiter’s dividend yield is 10.1% for the year to February 28, 2021, after 15.7% and 22.7% in the two previous years, reflecting the impact of lockdowns in the first part of the period and that a general meeting of Jupiter has approved the reduction of capital required for the demerger and initial public offering (IPO) of Juno Minerals Ltd, its iron ore spin-out, on the Australian Stock Exchange.
“Jupiter’s high payout ratio means that even in a year impacted by the COVID-19 virus a good final dividend was able to be paid, giving for the third year in succession a double-digit yield. This long life, low cost, manganese producer is now distributing out to shareholders its iron ore assets in an ASX float, which for us as royalty holders over the main iron ore asset is a doubly encouraging development”, Red Rock chairman Andrew Bell said in a statement.
Joint venture update
Meanwhile, Red Rock and Power Metal said following the granting to RRAL of its first five gold exploration licences in the state of Victoria, a further two licences, EL007329 (Evergreen) and EL007301 (Mt Bute), have been granted covering 484 and 85 square kilometres (sq km) respectively.
The firm said the seven granted licences in Victoria now cover an exploration area of 848 sq km, including numerous old mines and workings and identified geological targets, and that that with the bulk of the ground covered by the NI 43-101 report now at granted status, the IPO process for RRAL will accelerate.
“IPO plans for the assets held in our Victoria gold joint venture, Red Rock Australasia Pty Ltd, can finally move up a gear with the grant of two more tenements with a combined area of 569 sq km, one of which is the geologically interesting Evergreen tenement, which lies in an area attracting increasing exploration spend by companies we see as our market comparators. The tenement package with which we would now propose to go to the market represents we believe a strong and competitive investment offering”, Bell said.
“Today’s news marks a key point in the development of RRAL with the grant of the Evergreen tenement which is one of the larger licence applications and sits in an area of particular interest as demonstrated by increasing investment by peer companies in project acquisition and exploration. Grant of the two licences moves the IPO process front and centre. We believe that the core interests of RRAL forming the basis for an IPO on the Canadian capital markets represents one of the most comprehensive investment opportunities in the Victoria Goldfields for Canadian and international investors. RRAL are therefore moving forward at pace with both project exploration and corporate listing developments”, added Power Metal Resources chief executive Paul Johnson.
Red Rock owns a 50.1% interest in RRAL, while Power Metal owns the remaining 49.9% stake.
Shares in Red Rock rose 1.5% to 0.9p in late afternoon trading on Thursday, while Power Metal was up 2% at 2.5p.