Red Rock Energy Inc. Announces Plan to Review Strategic Alternatives to Enhance Shareholder Value
02 April 2014 - 3:00PM
Marketwired
Red Rock Energy Inc. Announces Plan to Review Strategic
Alternatives to Enhance Shareholder Value
CALGARY, ALBERTA--(Marketwired - Apr 2, 2014) - Red Rock Energy
Inc. (TSX-VENTURE:RRK) ("Red Rock" or the "Corporation") announced
today that its Board of Directors has commenced a process to
consider strategic and financial alternatives available to the
Corporation with the objective of enhancing shareholder value.
Strategic and financial alternatives may include, but are not
limited to, the sale of the Corporation, merger or other business
combination, additional financing, sale of all or a portion of the
Corporation's assets, or any combination thereof, and continued
execution of its business plans among all other alternatives. The
Board of Directors has established an independent committee
comprised of independent directors (the "Independent Committee") to
oversee the process.
The Corporation cautions that there are no assurances that the
process will result in a transaction, or if a transaction is
undertaken, the terms or timing of such a transaction. The Uranium
City assets include a land position of 60,581 hectares in a region
with historical production of 77 million pounds of uranium at an
average grade of .25%. The total confirmed resource in place as
determined by Red Rock exploration activities is 3.89 million
pounds, with significant historical resources estimated to be
within a short distance of the new Redox discovery zone.
The Corporation has not established a definitive timeline to
complete this activity and no decision on any particular
alternative has been reached at this time. There can be no
assurance that the process will result in a transaction of any form
or, if a transaction is undertaken, as to its terms or timing. The
Corporation does not intend to make any further announcements
regarding the process unless and until the Board has approved a
specific transaction or other course of action or otherwise deems
disclosure of developments is appropriate.
In discussing the Board's decision to take this action, Sandy
Loutitt, President of Red Rock, commented: "While we recognize that
the Uranium City properties have represented a key element to the
business strategy of Red Rock in the past, the recent increase in
market potential for uranium oriented projects, coupled with the
continuing difficulties surrounding funding of junior market
projects, has lead us to consider a variety of new business
strategies for the Corporation and its assets."
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or the
accuracy of this release.
READER
ADVISORY
Statements in this press release may contain forward-looking
information including expectations of future production, operating
costs, commodity prices, administrative costs, commodity price risk
management activity, acquisitions and dispositions, capital
spending, access to credit facilities, income taxes, regulatory
changes, and other components of cash flow and earnings. The reader
is cautioned that assumptions used in the preparation of such
information may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted, a
result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the company.
These risks include, but are not limited to, the risks associated
with the mining industry, commodity prices and exchange rate
changes. Industry related risks could include, but are not limited
to, operational risks in exploration, development and production,
delays or changes in plans, risks associated to the uncertainty of
reserve estimates, health and safety risks and the uncertainty of
estimates and projections of production, costs and expenses. The
reader is cautioned not to place undue reliance on this
forward-looking information.
Red Rock Energy Inc.Sandy
LoutittPresident403-685-9888www.redrockenergy.ca
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