Revolver Resources (ASX:RRR) has executed a memorandum of understanding (MoU) with the China Copper Industry Investment Alliance (CCIIA) for the Dianne Copper Mine in Queensland.
The MoU is established for offtake and funding arrangements for targeted near-term cathode production from the Dianne Mine.
Revolver Resources, which has a market capitalisation of $12.72 million, says the agreement involves both companies discussing and examining the technical and commercial feasibility of delivering copper cathode and to work towards establishing final scale agreements of copper cathode.
Both companies have formed a four-person cathode supply team to work towards targeted binding terms for offtake supply from the Dianne Mine, along with associated project development financing.
Managing Director Pat Williams says the funding arrangements have the potential to minimise the dilutive effects of more conventional equity financing.
“Revolver is pleased to form this relationship with CCIIA as a leading industry body securing offtake and to source additional copper cathode product sales,” Williams says.
“Revolver is in a highly unique and attractive position of having a high-grade copper deposit at-surface within the historic Dianne Copper Mine. The opportunity presented by targeted recommencement of production at Dianne next year is a relatively low development risk and capital-lite.
“Generating significant revenues from the Dianne Mine also delivers attractive, shareholder-friendly access to funding for ongoing exploration of our highly prospective exploration tenure at the broader Dianne and Osprey projects.”
Revolver is continuing progress on the critical path pre-construction activities needed to ensure that mining can begin in the first half of next year. The current work programs are designed to advance this work to a targeted “positive” final investment decision on the Dianne Mine later this year.
The Dianne Project covers six mining leases and three exploration permits within the proven polymetallic Hodkinson Province in north Queensland.
The CCIIA comprises a group of 11 banking, university, and aerospace sectors in the southeast Asian region. CCIIA members formed an alliance to work collaboratively to directly source copper, which is critical for the growth and progress of each of their businesses.
Write to Aaliyah Rogan at Mining.com.au
Images: Revolver Resources
