20/11/2007 - 22:00

CVRD, BHPB up stake in Heron

20/11/2007 - 22:00

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CVRD, BHPB up stake in Heron

GLOBAL miners, CVRD-Inco Ltd and BHP Billiton Ltd, continued to shower their attentions on resources junior Heron Resources Ltd, increasing their stakes in the West Perth company during the past week. On Tuesday, CVRD re-emerged as Heron’s biggest single shareholder with almost 14 per cent of the nickel company, tipping in $17.2 million. The transaction came just days after BHP had jumped to become Heron’s largest shareholder in a two-tranche share deal worth the same amount. The proceeds of the placement will be used to complete the current Jump-up Dam trial mining and demonstration project, undertaking the Jump-up Dam definitive feasibility study, regional nickel sulphide and laterite nickel exploration along with general working capital. About two weeks ago, CVRD-Inco announced it would proceed to the third stage of the Kalgoorlie Nickel Project, its joint venture with Heron. The attention on Heron comes at a time when BHP is focused on a takeover bid for rival mining giant Rio Tinto Ltd, a move that could leave CVRD as its major mining rival. Heron shares jumped 3.5 cents, or 3.2 per cent, on Tuesday, hitting $1.14 each in the wake of the latest announcement about CVRD. However, Heron shares still remain well below levels reach earlier this year when they traded briefly above $1.40 each.

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