Resource Star receives support from major shareholder

Resource Star (ASX: RSL) has advised that its major shareholder, Red Rock Resources PLC (LON: RRR), has confirmed its intention to provide Resource Star with ongoing financial support, if requested.

In an update to the market today, Resource Star said that subject to any necessary approvals, the support will be provided either by:

1. Unsecured loans at market interest rates; or
2. Advancing funds as a prepayment of Red Rock Resources’ allotment under any Entitlement Issue undertaken by Resource Star; or
3. convertible loans on commercial terms.

Any loans would be repayable not later than the completion of Resource Star’s audit for the financial year ended 30 June 2012.


Resource Star operations
In the quarterly update, Resource Star highlighted that the Livingstonia uranium resource increased by 30% to 6.0 million pounds at 325ppm eU3O8 following an independent review by CSA Global.

In other positive moves for the company, a joint venture was signed with Thundelarra Exploration for the Spinifex Uranium Project in Western Australia.

Exploration work also commenced on the unconformity related prospect, with new, well defined rare earth targets defined at Ilomba Hill in Malawi.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20361/resource-star-receives-support-from-major-shareholder-20361.html