The primary goal of the company is to deliver our shareholders sustainable capital growth as well as cash flow in the form of dividends. We intend to do this by implementing a two tiered strategy:

Tier One: Acquisition and development of Advanced Mineral Projects

Tier Two: Implementing a Prospect Generator Model for Exploration Projects.

Tier One: Advanced Mineral Project Portfolio

We intend to acquire and develop a portfolio of operational assets which generate superior financial returns within a 3-5 year timeline. Project acquisition and development thresholds will be based on financial returns rather than physical parameters. Red River has identified a number of target commodities for which we believe the price outlook is positive – underpinned by structural supply/demand imbalances and increasing demand from emerging markets and/or continued advances in the application of new technologies.

Our efforts will be directed towards these commodities, however we will remain open to all opportunities, regardless of commodity, as long as the opportunity meets our financial thresholds.

Tier Two: Prospect Generator Model for Exploration Activities

The mining sector is based on the exploitation of finite assets, as once mined a resource is not renewed. As such, investment in exploration to renew the resource base is a critical component of the long term success and viability of the mining sector.

Whilst the odds of greenfield exploration generating an economic discovery are low, we support the requirement to undertake exploration to define the next generation of projects. Red River believes the best route for our shareholders to gain exposure to exploration upside is to act as a prospect generator. We will utilise our knowledge base to identify and acquire exploration projects in locations considered highly prospective for significant economic discoveries. Upon obtaining exploration licences in such areas, we will initially focus our attention on low cost exploration activities prior to seeking third party funding for the expensive drilling phase.


By following this new strategic direction Red River Resources shareholders will be able to gain exposure to advanced minerals projects which have a greater chance of being developed and generating attractive returns, whilst continuing to have exposure to the upside from higher risk but potentially high return exploration projects.

Most importantly, we will effectively utilise our limited resources by ensuring the majority of shareholder funds are targeted towards development and exploration activities.