05/10/2009 - 09:35

Chinese firm injects $2.7m into Heron

05/10/2009 - 09:35

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Heron Resources says the first tranche of a project joint venture deal with Ningbo Shanshan has been completed, with the Chinese entity injecting $2.7 million into the West Perth-based explorer.

Heron Resources says the first tranche of a project joint venture deal with Ningbo Shanshan has been completed, with the Chinese entity injecting $2.7 million into the West Perth-based explorer.

Shanshan has subscribed to more than 12 million Heron shares at 22.5 cents each to raise $2.71 million for Heron, giving the Chinese entity a 4.99 per cent shareholding.

Shanshan has the option to subscribe to two further tranches of Heron shares, each equivalent to 5 per cent of the company's issued capital.

Under the deal, Shanshan will carry out the feasibility study into treating ore from Heron's Yerilla nickel-cobalt project.

Shanshan, one of the world's largest producers of materials for the lithium ion battery, is constructing a pilot plant at its facilities in China for the Yerilla ore.

Shares in Heron climbed 0.5 cents to 19.5c at 12:10 AEST.

 

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