Red Rock Resources Plc said April 5 that it has reached a settlement with Colombia Milling Ltd. over certain disputes related to the 2015 sale of the El Limon mine in Colombia.
In January, Red Rock submitted a request for arbitration to the International Chamber of Commerce, seeking damages from Colombia Milling and its parent Para Resources Inc. The proceedings have been discontinued.
Colombia Milling agreed to make a US$250,000 partial prepayment of the US$1 million promissory note held by Red Rock within 60 days. The balance of the notes will remain payable on April 1, 2018.
Red Rock claimed in July 2016 that it had the right to convert the US$1.0 million promissory note issued by Colombia Milling, with the mine now part of Para Resources following the acquisition of Colombia Milling. The claim was disputed by Colombia Milling and the parent company.
As part of the settlement, a 3% net smelter return royalty will be construed to cover all gold produced from the El Limon mill site, including gold produced from third-party ore.