The Rockfire Resources PLC (LON: ROCK) shares were suspended from the AIM after announcing that it had acquired two cash-generating businesses from Paloma Precious DMCC. The company acquired 99% of Emperesse Bullion LLC (Emperesse) and 100% of Emirates Gold DMCC (Emirates).
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The mining company noted that the acquisitions were part of its ambitious growth strategy, with the two acquisitions representing a potentially transformational, value-enhancing transaction for shareholders, which could also accelerate the Company's growth strategy.
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The two acquisitions will be conducted via reverse takeover (RTO) transactions according to rule 14 of the AIM Rules. They will require the company to apply for the admission of the new shares issued via the transaction to the AIM, which is why the company’s shares were suspended.
Paloma, the company that sold 100% of Emirates and 99% of Emperesse to Rockfire Resources, also owns 21.7% of Rockfire and is its biggest shareholder. Emirates’ primary business activities are trading non-manufactured precious metals and jewellery in Dubai’s DMCC multi-commodities centre free-trade zone and operating a gold and silver refinery.
In the previous year, which ended 31 December 2022, Emirates made a profit before tax of 1.1 million UAE Dirham (“AED”) (approx. £2.4 million) on revenues of AED17.8 billion (approx. £3.9 billion). The company has audited net assets of approximately AED192.3 million (approx. £41.8 million).
Emperesse is involved in precious metals trading and operates a gold, silver and platinum trading shop in the ‘Dubai Gold Souk’ market, but it leases the shop it operates from. During the previous year, the company made a profit of approx. USD$0.081 million (approx. £0.065 million) on revenue of approx. USD$0.77 million (approx. £0.616 million).
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.”
Rockfire Resources (ROCK) share price.
The Rockfire Resources share price was suspended from trading on the LSE’s AIM market earlier today.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.