Revolver Resources (ASX:RRR) has confirmed its execution of an MOU with a Chinese industry alliance group with a view towards copper offtake.
That MOU underlies a situation wherein the China Copper Industry Investment Alliance (CCIIA) would offtake 100% of “copper cathode product” from Revolver’s Dianne Copper Mine.
This, in turn, would allow Revolver to introduce a funding pathway to restart production on-site that wouldn’t irk shareholders via dilution. At the same time, teaming up with the CCIIA also reduces Revolver’s exposure to regulatory enthusiasm for domestic critical minerals supply capacities.
While it would be unfair to Revolver to suggest this observation is anything but an unrelated tangent, deals with groups like CCIIA are exactly the kind of thing Kim Beazley told Diggers and Dealers 2024 on Monday local companies should be trying to avoid.
At any rate. Copper prices are tanking, and Revolver wants to get Dianne up and running again without worrying about that headache. (There’s also the fact Chinese economic indicators are responsible for a lack of bullishness surrounding the world’s second largest economy; that the country has long been an important trading partner; and that there’s not really anyone else in our region who’s buying yet, either.)
Copper from Dianne would go into batteries under the MOU as cathode material. Dianne is a historic mine which Revolver says boasts near-surface “high grade” mineralisation.
“Revolver is pleased to form this relationship with CCIIA,” Revolver MD Pat Williams said.
“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.”
RRR last traded at 4.9cps.