Such is the life of a struggling base metals miner. I cut at a small loss more than a year ago (while acknowledging the best of luck for those that still hold that hopefully there will be a good outcome) after losing conviction on Mal Palanchian as an effective operator for RVR. I think the final straw was the lack of direction on Hillgrove and long term plans on base metal assets.
Recent announcement below:
On 30 November 2022, Red River Resources Limited (ASX: RVR) (Red River or Company) advised that Jeremy Nipps, Barry Wight and Thomas Birch were appointed as joint and several administrators of Red River and its wholly owned subsidiaries Hillgrove Mines Pty Ltd (owner and operator of the Hillgrove Gold Mine), Forth Resources Pty Ltd and Hebrides Resources Pty Ltd (Administrators) on 29 November 2022.
Red River notes that the decision to appoint the Administrators was a decision made by the directors of Red River (Directors) and not Trafigura Pte Ltd (Trafigura) due to the Directors’ concerns that Red River was either insolvent, or was likely to become insolvent at some future time, and that, as at today’s date, Trafigura has not sought to enforce its rights under the parent company guarantee issued by Red River in favour of Trafigura (Guarantee).
Further, while Trafigura did submit on 29 November 2022 an indicative non-binding term sheet outlining terms on which it was willing to consider providing forbearance of its claim under the Guarantee, the Directors believed this was not in a form capable of acceptance, or sufficiently advanced to be progressed to a form capable of acceptance, within the required timeframes to address the Directors’ concerns about the Company’s solvency.
This announcement has been drafted by the Red River Board and approved for release by Administrators. The Administrators’ investigations concerning the events leading to their appointment are continuing
