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Red River Resources renews lead and zinc offtake deal with Trafigura and sets up new working capital facility

Last updated: 09:58 24 Nov 2020 AEDT, First published: 09:54 24 Nov 2020 AEDT

Red River Resources Limited - Red River Resources renews lead and zinc concentrate offtake deal and sets up extended working capital facility with Trafigura
Founded in 1993, Trafigura is one of the world's largest physical commodities trading groups

Red River Resources Limited (ASX:RVR) (FRA:R1R) has renewed the lead and zinc concentrate offtake agreements and established an extended working capital facility with Trafigura Pte Ltd. 

The offtake agreements, which cover the Thalanga operations in North Queensland, begin in January 2021 and run for three years. 

Under the terms of the extended offtake agreements, zinc and lead concentrates will be trucked about 200 kilometres to the Port of Townsville, for onward delivery to customers. 

Up to US$15 million facility

The working capital facility of up to US$15 million is available to Red River and its affiliate Cromarty Resources Pty Ltd for general working capital, corporate and other purposes.

The facility will be provided on similar terms to the previous US$10 million working capital facility.

Largest physical commodities trading group

Founded in 1993, Trafigura is one of the world's largest physical commodities trading groups. It sources, stores, transports and delivers a range of raw materials, including oil and refined products and metals and minerals, to clients globally.

The trading business is supported by industrial and financial assets, including a majority ownership of global zinc and lead producer Nyrstar NV (OTCMKTS:NYRSY) (FRA:3NY1), which has mining, smelting and other operations in Europe, the Americas and Australia.

It also has a significant stake in global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; and Galena Asset Management.

Hillgrove gold production to restart

RVR’s foundation asset is the Thalanga Base Metal Operation in North Queensland, where copper, lead and zinc concentrate production commenced in September 2017.

The company has also acquired the high-grade Hillgrove Gold Project in northern New South Wales and is on-track to restart gold production by the end of 2020.

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