News for 'RCKE' - (Rock Energy Resources Announces the Closing of Its He-Man LLC Acquisition, the Ordering of Mill Equipment and the Commencement of Mining Operations)
HOUSTON, Dec 20, 2011 (BUSINESS WIRE) -- Rock Energy Resources, Inc. (RCKE.pk)
announced today that it has closed its acquisitio! n of 100% of the equity
interests of privately held He-Man, LLC. He-Man's principal asset is a 49%
interest in the Red Arrow gold mine located in Mancos, Colorado. As previously
announced, He-Man closed on a $25 million credit facility to fund the
development of the Red Arrow mine on December 14, 2011.
Rock Energy also announced that it has begun ordering the equipment needed for
installation of the first 20,000 ton per year mill at the Red Arrow mine. Once
fully operational and with a projected yield of 1 ounce of gold per ton, Mill #1
is expected to generate approximately $30 million per year of revenues at an
estimated cost of $1,500 per ounce. The Company plans to install three mills
over the next three years. Mill #1 is expected to be operational in April 2012.
The Company has already begun the process of moving already mined ore onto the
location where Mill #1 will be constructed.
Commenting on today's announcement, Rocky! V. Emery, Chairman and CEO of Rock
Energy Resources, stated, "We a re beginning the operational process even now to
get a jump on the New Year. As previously stated, we are taking the necessary
steps to rebuild our Company for the benefit of our loyal shareholders on all
fronts. In the coming weeks we will lay out a complete plan along with pro-forma
financial statements. We have also retained the professionals to begin the
process of updating the Company's public company reports, including its
financial statements. I am committed to accomplishing these projects for our
shareholders and intend to keep everyone up to speed with our progress on these
fronts."
Certain statements contained in this press release, which are not based on
historical facts, are forward-looking statements as the term is defined in the
Private Securities Litigation Reform Act of 1995, and are subject to substantial
uncertainties and risks in part detailed in the respective Company's Securities
and Exchange Commission filings,! that may cause actual results to materially
differ from projections. Although the Company believes that its expectations are
reasonable assumptions within the bounds of its knowledge of its businesses,
expectations, representations and operations, there can be no assurance that
actual results will not differ materially from their expectations. Important
factors currently known to management that could cause actual results to differ
materially from those in forward-looking statements include the Company's
ability to execute properly its business model, to raise additional capital to
implement its continuing business model, the ability to attract and retain
personnel -- including highly qualified executives, management and operational
personnel, ability to negotiate favorable current debt and future capital
raises, and the inherent risk associated with a diversified business to achieve
and maintain positive cash flow and net profitability.! In light of these risks
and uncertainties, there can be no assuran ce that the forward-looking
information contained in this press release will, in fact, occur.
SOURCE: Rock Energy Resources, Inc.
CONTACT:
Rock Energy Resources, Inc.
Rocky V. Emery, 832-301-5968
Chairman and CEO
emeryrocky1@aol.com
Copyright Business Wire 2011
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KEYWORD: United States
North America
Colorado
Texas
INDUSTRY KEYWORD: Energy
! ; Oil/Gas
Other Energy
Natural Resources
Mining/Minerals
SUBJECT CODE: Merger/Acquisition
