Red River Resources Limited (ASX:RVR) (FRA:R1R) has received a further boost at the restarted Hillgrove Gold Mine in northern NSW by signing an offtake agreement with leading global commodity producer and trader Glencore International AG.
This agreement covers gold concentrate produced from Hillgrove’s Bakers Creek stockpile and extends a positive relationship the company has established with Glencore PLC (LON:GLEN).
The four-year relationship also incorporates a copper offtake arrangement at RVR’s Thalanga Base Metal Operations in Queensland.
First load trucked
Kicking off the Hillgrove sale agreement for 100% of gold concentrate, Red River trucked its first load of concentrate from Hillgrove on June 18, 2021, as mine commissioning activities progress.
Red River managing director Mel Palancian said: “It’s great to have the support of Glencore for Hillgrove given our strong four-year working relationship to date. Also, to commence trucking our gold concentrates to add to our Hillgrove gold dore revenues.”
Commercial ramp-up
The MD added: "We are focused on the commercial ramp-up at Hillgrove whilst also increasing our JORC 2012 resource base.”
Red River commenced gold production from Bakers Creek stockpile material in December 2020 after acquiring the high-grade project in 2019.
Multi-asset strategy
This has formed a key part of the company’s strategy to build a multi-asset operating business focused on base and precious metals.
It says the objective of the strategy is to “deliver prosperity through lean and clever resource development”.
Glencore is one of the world’s largest globally diversified natural resource companies with around 150 mining and metallurgical sites and oil production assets.
It sources commodities and products from a global supplier base then sells them to customers all over the world.
Shares are up 5% to 21 cents while RVR’s market cap pre-open was approximately $103.6 million.