Red Rock Resources associate Resource Star to re-list on ASX

Red Rock Resources plc (AIM:  RRR) reported that its 24.4% owned associate company Resource Star Limited (ASX: RSL) has closed its capital raising, which would allow it to re-list on the Australian Stock Exchange (ASX).  The Australian based uranium explorer announced its intention to raise AUD$4.4m and re-list on the ASX in December. Resource Star said it has now raised more than the minimum requirement stated in its prospectus.

Following the ASX listing, Red Rock will be interested in approximately 12.8 million Resource Star shares, which will represent between 20% and 24.9% the issued ordinary share capital on listing, depending on the number of valid acceptances received under the fund raising. In November, the company inked a joint venture with Globe Metals & Mining (ASX: GBE) to explore Resource Star’s Machinga niobium, uranium and rare earth projects in Malawi.

The Globe Metals & Mining agreement also provides Resource Star with a right of first refusal over an exploration joint venture on Globe's sandstone-hosted Redox Uranium Livingstonia project in Malawi.

In January, London-based independent research group Growth Equities and Company Research (‘GECR’) noted that Resource Star’s re-listing will be positive for Red Rock. Moreover GE&CR said the shareholdings in Resource Star and fellow investee Jupiter Mines (ASX: JMS) are currently valued in excess of £12 million, which exceed Rock Rocks own market capitalisation. Therefore its own 1.17 million ounce gold resource and its other operations are valued by the market at ‘less than nothing’, the analyst said.

Similarly on the 18th February, Edison Investment Research indentified the considerable discount in-play, as it revisited its stance on Red Rock, stating that the mineral exploration investor could be trading at an 89% discount to its NAV (net asset value).  http://www.proactiveinvestors.co.uk/companies/news/13535/red-rock-resources-associate-resource-star-to-re-list-on-asx-13535.html