LONDON, UK: Rockfire Resources plc, a UK-based exploration company, has announced a deal to buy two cash-generating and profitable companies in Dubai that are involved in gold and silver refining and trading. The deal is worth USD$20 million and is subject to shareholder and regulatory approvals.
The two companies are Emirates Gold DMCC and Emperesse Bullion LLC, which are owned by Paloma Precious DMCC, the largest shareholder in Rockfire with a 21.7% stake. The deal is expected to be a transformational and value enhancing transaction for Rockfire, which will accelerate its growth strategy.
However, the deal is conditional on Emirates being restored to the UAE’s good delivery list of approved refineries, which it was removed from in July 2023. This also led to the revocation of its affiliate membership in the London Bullion Market Association.
As a result of the deal, Rockfire’s shares have been suspended from trading on AIM until the publication of an admission document and approval of shareholders. The company will seek to publish the document as soon as possible.
David Price, Chief Executive of Rockfire, said: “The Board of Rockfire has identified an exceptional opportunity to acquire two cash-generating businesses, which are entirely in line with the full value-add integration of precious and base metal exploration, development, production, refining and trading.
“The proposed acquisition of Emirates and Emperesse would not only be transformational for our shareholders but would enable Rockfire to continue to grow as a global explorer and refiner of metals, all backed with positive cash flow.
“The board has been successful in identifying supportive investors, with a shared goal to build Rockfire through its ambitious growth strategy. We are delighted to welcome them to our share register and we appreciate their support, vision and belief.
“We will continue to provide updates on progress with our drilling at Molaoi. Molaoi will remain an important part of our mining integration and the Company intends to continue its constant appraisal of new mining projects.
“With the suspension of trading, we would like to reassure our shareholders that we have every intention of restoring the shares to trading on AIM as quickly as possible. However, our due diligence must be completed thoroughly, professionally and in accordance with the AIM Rules. Rockfire’s lawyers, Fladgate, our auditor, PKF, our nominated adviser, Allenby Capital and the Company’s Dubai advisers have all agreed to complete this due diligence and the Admission Document, so our shareholders can take comfort in a quality and experienced team to complete this very important phase of our growth.
“We look forward to keeping the market informed and we thank our shareholders in advance for their patience and support during this exciting and transformational phase for the Company.”
Quartix Technologies has acquired Konetik Deutschland GmbH for £3.4 million