Receivers for Red River

Red River Resources has formally called in receivers.

Red River Resources has formally called in receivers.

The company lost managing director Mel Palancian in July this year, followed by chairperson Brett Fletcher and non-executive director Ian Smith in August, while its subsidiary Cromarty Resources was placed into voluntary administration in October resulting from on-going operational issues at the Thalanga base metals operation in Queensland.

The Thalanga mining schedule had also been impacted when operations were suspended between August 2 and August 19, following a fall-of-ground event.

Jeremy Joseph Nipps, Barry Wight and Thomas Birch of Cor Cordis have been appointed as administrators of Red River and its wholly-owned subsidiaries Hillgrove Mines (operator of the Hillgrove gold mine), Forth Resources and Hebrides Resources.

Cromarty had entered voluntary administration on October 27. The largest secured creditors of Cromarty are Red River and Trafigura.

The company said that it had been in discussions with various stakeholders regarding options to preserve shareholder value. A common pre-requisite to all options pursued was the agreement with Trafigura on its intention with respect to the exercise of its legal rights against Red River.

Red River has been unable to obtain such an agreement from Trafigura on a timely basis, which prejudiced the ability to raise new capital.

The directors of Red River believe the only course of action available to the company is to enter voluntary administration.

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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