Zinc development company Red River Resources announced that it has made the final deferred cash payment of A$1.5 million to Kagara Ltd, the vendors of the Thalanga Zinc Project.
The Payment is final consideration in relation to the acquisition of 100% of the Project and was triggered by the completion of the recent A$30 placement, which financed the re-start of the project.
The company’s Managing Director Mel Palancian said the completion of the payment leaves the company with clear title to 100% of the Project, which will be fully unencumbered, with no further outstanding acquisition payments to be made.
“The completion of the outstanding deferred acquisition payment to Kagara Ltd (in liquidation) marks the beginning if a new era for the Thalanga Zinc Project,” he said.
“Next year promises to be a very exciting year, as we move to restart production in mid-2017, transforming Red River into the only primary zinc producer listed on the ASX.”
The Thalanga project is located approximately 60km west of Charters Towers in Central Queensland, and approximately 200km SW of Townsville.
It was discovered in 1975 by Pennaroya Australia Pty Ltd and construction and development of the project was completed in 1989, when commercial production commenced.
Thalanga Operations were placed on active care & maintenance by Kagara in 2012. Two years later, Red River acquired the project from Kagara, which is now in liquidation.
The key infrastructure on site consists of poly metallic processing plant (capable of producing separate copper, lead and zinc concentrates), offices, workshops, change facilities and stores complex, tailings storage facility, connection to grid power and water supplied from bore field.