Red River Resources (ASX: RVR)
Provided an update on legal proceedings against its wholly-owned subsidiary Cromarty Resources Pty Ltd (Cromarty) and Red River, relating to the payment of royalties.
Red River has received judgement in the Proceedings and the initial estimated range is approximately $15 to $20 million in total for unpaid and future royalties.
.
.
| Red River Resources | ASX : RVR |
| Stage | Production / Exploration |
| Metals | Gold, Antimony, Copper, Zinc, Lead |
| Market cap | A$113 m @ 22c |
| Location | Queensland + New South Wales |
Red River Resources Limited (ASX: RVR) (“Red River” or “the Company”) provides an update on legal proceedings against its wholly-owned subsidiary Cromarty Resources Pty Ltd (Cromarty) and Red River, relating to the payment of royalties (Proceedings). Thalanga Copper Mines Pty Ltd (TCM), a wholly-owned subsidiary of Vedanta Resources Limited, commenced the Proceedings in 2019 (see ASX Announcement 25 February 2019).
The Proceedings relate to the obligation for Red River to pay royalties to TCM at its Thalanga Operations in northern Queensland, which it inherited when it acquired the project in 2014.
Red River has received judgement in the Proceedings and the initial estimated range is approximately $15 to $20 million in total for unpaid and future royalties. The final amount payable within the initial estimate and the timing of the payments has yet to be determined.
Prior to these Proceedings, the royalties had no cap on the time period or dollar amounts that would have had to be paid by the Company from Thalanga. Once determined, a final amount for these royalties can crystallise and Red River will have no ongoing royalty obligations to TCM.
Red River is reviewing the judgement with its lawyers to assess its options and reserves its rights.
Management continues to focus on the commercial ramp up of Hillgrove, further optimising operations at Thalanga, and increasing mineral resources inventories at both operations.
.
Red River will provide further updates to the market in due course.
.
To read the full news release, please click HERE
.
=======
.
City Investors Circle is based in the financial district in the City of London
We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.
Our audience is selected and invited individually to ensure interest and relevance for the presenting company.
Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.
We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.
If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com
.
=======
,
This website is not sponsored, we are truly independent, and will always remain so.
Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.
All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.
These articles are for awareness and informational purposes only, and are not recommendations in any form. Always consult an investment professional.
.
Disclosure
At the time of writing the writer held shares in Red River Resources, bought at the market price on the day of purchase.
To read our full terms and conditions, please click HERE