Red Rock Resources PLC (AIM: RRR) said the contract to buy a mobile gold treatment plant from Australia’s Resource Gold Proprietary Ltd has been terminated by mutual agreement, and Resource Gold will return the initial payment of A$100,000 in two instalments.
Red Rock announced in April 2009 it was buying an A$200,000 mobile gold treatment plant and entered an option to buy a second unit. The deal was for a turnkey gravity plant and smelter, to be built at the Resource Gold’s factory in Perth, Western Australia.
The termination of the purchase agreement reflects a strategic decision by both parties to place greater emphasis on their own interests, which makes it appropriate for Red Rock to concentrate on developing its interests, including gold, independently, and for Resource Gold to devote its resources to developing plants for its own operations, Red Rock said.
It continues to hold approximately 11 percent of the issued ordinary share capital of Resource Gold.