Red River Resources Ltd has entered a new offtake agreement with leading global commodity producer and marketer Glencore International AG for copper concentrate produced at the company's Thalanga Operations in Queensland.
The agreement covers all of the copper concentrate produced at Thalanga until June 2023 with Glencore to take delivery of concentrate at the Thalanga mine gate.
“We are pleased to have a new agreement with Glencore for copper concentrate produced at Thalanga," Red River managing director Mel Palancian said.
"We have had a great relationship since 2017 and we look forward to continuing this,” he added.
Red River produced more than 40,000 dry metric tonnes of copper concentrate at Thalanga in financial year 2021.
The company also produced 6,311 tonnes of zinc concentrate, 1,350 tonnes of lead concentrate and 3,565 tonnes of copper concentrate from its Thalanga Base Metal Operation and a further 1,521 ounces of gold from its Hillgrove Gold Operation in NSW.
Shares have been as much as 11.2% higher intraday to 20 cents.
About the companies
RVR is focused on building a multi-asset operating business targeting base and precious metals with the objective of delivering prosperity through lean and clever resource development. The company’s foundational asset is its Thalanga Base Metal Operation in Northern Queensland.
Red River also commenced production during FY21 at Hillgrove Gold Operation in NSW, which was acquired in 2019. The Hillgrove Operation is a key part of RVR’s strategy to build a multi-asset operating business focused on base and precious metals.
Glencore is one of the world’s largest globally diversified natural resource companies with around 150 mining and metallurgical sites and oil production assets. Glencore sources commodities and products from a global supplier base then connects them with customers all over the world.