Red Rock Resources has sold its gold royalty interest in Colombia’s El Limon mine back to the mine’s owner, Soma Gold Corp, for £1 million cash plus share subscription rights worth up to C$400,000.
The London-listed natural resources company announced yesterday that it had divested the royalty it has held since 2015. As part of the deal, Red Rock will receive 200,000 subscription rights exercisable over 36 months to purchase Soma shares at C$2 each.
The royalty comprised a 3% net smelter return up to a maximum of $2 million, followed by a 0.5% NSR on a further $1 million of production.
Whilst the royalty has not generated payments for several years, production was expected to resume later this year.
The sale will be seen as a win by investors as they await news on Democratic Republic of Congo legal claims and its Ivory Coast gold portfolio.
“The sale of the royalty back to the mine owner gives Red Rock cash to extinguish liabilities and support working capital, consistent with the priorities set out in our announcement of 21st July 2025,” said Red Rock Chairman Andrew Bell.
“We believe that the price of c USD1,350,000 plus warrants is a fair one, giving the mine owner a discount to the £1,500,000 at which the asset is carried in our books but accelerating the payment to us and removing our exposure to performance risk of the gold assets concerned.”
Red Rock Resources shares were 15% higher at the time of writing.