Red River raises cash to further Kagara assets
PERTH (miningweekly.com) – ASX-listed junior Red River Resources has raised A$3.6-million through a share placement to fund project development activities and restart exploration at its Southern Region assets, in Queensland.
The company said on Friday that about 20-million shares would be placed, at a price of 18c each, to institutional and sophisticated investors. The shares would be issued under the company’s 15% capacity.
In September, Red River acquired the Southern Region zinc assets from embattled miner Kagara in a deal valued at A$6.5-million. The assets include a 3.8-million-tonne Joint Ore Reserves Committee-compliant resource grading 0.9% copper, 2.4% lead, 8.2% zinc, 0.6 g/t gold and 41 g/t silver, and a 600 000 t/y polymetallic processing facility.
“We will now progress the restart studies, commence exploration activities at Thalanga, as well as continue evaluation work on our current project pipeline,” said Red River MD Donald Garner following the capital raise.
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