LONDON (ShareCast) - (Sharecast News) - Natural resources development company Red Rock Resources updated the market on its Red Rock Australasia (RRAL) joint venture on Monday, which has gold exploration interests near the historic mining centre of Ballarat in the gold fields of Victoria.

The AIM-traded firm owns 50.1% of RRAL, with 49.9% being owned by its AIM peer Power Metal Resources.

It said the Canadian initial public offering process for RRAL had now started, with the appointment of legal counsel in Canada.

Following the grant of the first three licences, announced on 2 February, a further seven applications were at an advanced stage of processing, the board reported.

Additionally, a new application was made for the 227 square kilometre exploration licence '45/5859' in Western Australia, which would be subject to a ballot between RRAL and Rumble Resources.

"With three key licenses now granted, and better visibility on the processing pipeline on the remaining applications, we have initiated the process which we intend to lead to a listing of certain core assets by IPO on the Canadian capital markets," said chief executive officer Andrew Bell.

"This decision is a milestone for the company and for its partner, Power Metal Resources.

"Three months of intensive work now begins to advance this process."

Bell said the opportunity arose to apply for ground in Western Australia in an area currently attracting a high level of exploration interest for gold and base metals, when Rio Tinto dropped its application.

"The application is close to licences with which Red Rock originally listed in London, when the target was manganese, so we have some knowledge of the area, which now goes to ballot between the two applicants."

At 1256 GMT, shares in Red Rock Resources were down 2.5% at 1.07p.

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