Yorkville Advisors, the US based alternative investment manager, has entered on behalf of one of its funds into a debt facility of USD1.2m with AIM-listed Red Rock Resources, a gold mining and exploration company.
This latest debt facility represents the third debt financing for Red Rock Resource.
From the provision in April 2009 of the initial standby equity distribution agreement transaction with Red Rock Resource, Yorkville has subsequently provided three debt facilities to the company of GBP400,000 in Oct 2009, USD1.6m in March 2010 and now this latest USD1.2m debt facility.
Brian Kinane, managing director of Yorkville Advisors UK, says: “We set out to become a long-term partner to investee companies and to work in tandem with them to help accelerate their growth plans. Our relationship with Red Rock is a good illustration of this. The mechanics of the SEDA help us to get to know the company and give us the confidence to contribute on future and more complex financings in meaningful and timely ways that could be used for general working capital or finance acquisitions as we did for Red Rock’s investments in Cue Resources and Mineras Four Points Colombia."
"Our relationship with Yorkville has been beneficial to both parties, and continues to develop,” adds Andrew Bell, chairman of Red Rock Resources. “The finance provided at key moments has enabled us to raise equity funds at a later date and on better terms than would have been possible otherwise. Yorkville understand that what is good for us is good for them, and they do not just want us to expand our operations, but want to see our share price perform as well. Over the period we have worked together, there has been a steady improvement in price and volume of our shares. This consonance of aims and values is important to us."
