PERTH (miningweekly.com) – ASX-listed Red River Resources has inked a zinc and lead offtake agreement over its Thalanga zinc project, in Northern Queensland.
The offtake agreement with Trafigura accounted for 122 000 t of zinc concentrate and 27 400 t of lead concentrate, with pricing to be determined by metal prices on the London Metal Exchange at the time of shipment.
The concentrate is expected to be shipped in the first 36 months following the start of commercial production at the Thalanga project.
“The execution of a zinc and lead concentrate offtake agreement with Trafigura is the culmination of a competitive process involving a number of leading trading and smelting companies,” said Red River MD Mel Palancian.
“The highly competitive nature of the process has allowed us to obtain outstanding offtake terms for both zinc and lead concentrates which will contribute to the success of Thalanga.”
Production at Thalanga is set to start in the second half of 2017. The project is expected to produce an average 21 400 t/y of zinc, 3 600 t/y of copper, 5 000 t/y of lead, 2 000 oz/y of gold and 370 000 oz/y of silver in concentrate over an initial five-year mine life.
Red River said on Tuesday that the offtake agreement was structured to help minimise the company’s working capital requirements for the Thalanga project.