LONDON (ShareCast) - (Sharecast News) - Red Rock Resources announced an agreement to sell its gold exploration assets in Ivory Coast to Australia's Dalaroo Metals for AUD 715,500 (£350,000) in shares on Wednesday, as part of a strategy to monetise non-core assets and strengthen liquidity.

Under the binding conditional agreement, Dalaroo would acquire 100% of Red Rock's subsidiary LacGold Resources SARLU, which holds the company's Ivorian exploration licences and applications.

At settlement, Red Rock would receive 13.25 million Dalaroo shares, valued at AUD 0.054 each, and would also be entitled to a resource definition royalty of AUD 2 per ounce on any future Indicated Resource.

The AIM-traded firm said the transaction remained subject to due diligence by Dalaroo and approval by its shareholders, with completion expected within five days of the conditions being met and no later than 31 December.

It said the licences would be transferred with an existing 1.5% net smelter return royalty.

"We received three offers for our Ivory Coast licences, and chose Dalaroo as our preferred partner," said chairman Andrew Bell.

"We see the assets as highly prospective but given their considerable size, and our other commitments, we believed their sale under a partnership model to an aggressive explorer was our best way forward."

He added: "Our decision to monetise the unregarded or non-core assets in our portfolio saw the recent sale of a gold royalty in Colombia, where we recently received all the agreed consideration.

"With this sale, we receive free trading shares now, giving us flexibility in managing our liquidity, and will participate in future success if exploration leads to an Indicated Resource or to eventual gold production."

Red Rock said the assets had a book value of £123,863 as of 31 December 2024.

The sale marked the latest step in the company's efforts to streamline its portfolio and focus on projects it considered core to long-term growth.

At 1126 BST, shares in Red Rock Resources were flat at 1126 BST.

Reporting by Josh White for Sharecast.com.

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