Red Rock Resources has entered into financing agreements under which it will fund Steelmin Ltd to complete the refurbishment and recommissioning of a ferrosilicon smelter in Jajce, Bosnia, and acquire an interest in that company.
It had issued an eight-month secured loan note for €3,874,560 to Steelmin, bearing interest at 13% a year and extendable for a further eight months for a fee. The first tranche of €2,737,712.96 has been paid with a balance due in one week.
Red Rock said it had been issued 16% of the share capital of Steelmin, and this would increase to a maximum 30% depending on the date of full repayment of the Loan.
Red Rock would hold one board seat and one observer seat on the Steelmin board, with two seats if the loan was extended.