Junior miner Red River folds

Minerals explorer Red River Resources has collapsed after an eight-month endeavour to save the troubled company, which was suspended from the ASX. 

Majority of the junior miner’s creditors or shareholders voted to voluntarily wind up the company and appoint liquidators Thomas Birch, Jeremy Nipps and Barry Wight from Cor Cordis on Wednesday.

Red River Resources was the parent company to Red River, Forth Resources, Hebrides Resources and Hillgrove Mines - the owner and operation of the Hillgrove gold mine in New South Wales

It also owned Cromarty Resources, the owner and operator of the Thalanga mine in Queensland which entered administration and subsequent liquidation over a “fall of ground event in August 2022 and associated operation issues”.

Just weeks after Cromarty Resources was folded, the other four subsidiaries were voluntarily taken over by administrators Thomas Birch, Jeremy Nipps and Barry Wight, who are now acting as the liquidators, in November. 

At the time, Red River Resources said its directors made the decision to appoint administrators due to concerns the explorer was either “insolvent or likely to become insolvent”.

In January, the administrators engaged Argonaut PCF to carve up its assets or restructure the group and managed to sell some of the tenements.

The Hillgrove operation, also on care and maintenance since September, is in the process of being sold to a potential buyer, according to the liquidator.

Red River Resources last quarterly results for the period to September 30 showed that its unaudited consolidated EBITDA for the quarter was a loss of $9.5 million.

On August 22, the ASX suspended Red River Resources from trading its securities on the stock market after it failed to pay its annual listing fees.