Aspiring miner Heron Resources has tapped investors for about $240 million and says it is now fully funded to develop its Woodlawn zinc-copper project in NSW.
Aspiring miner Heron Resources has tapped investors for about $240 million and says it is now fully funded to develop its Woodlawn zinc-copper project in NSW.
Heron said today the funding package comprised a loan, equity and stream funding deal with Orion Mine Finance Group for $129 million, a subscription agreement with existing shareholder Greenstone Resources for $42 million, a similar agreement with new investor Castlelake for $33 million, and a further $37 million by way of a placement and share purchase plan.
All equity components of the funding deals were made at 7 cents a share, representing a 14 per cent discount to Heron’s 10-day volume-weighted average price.
Heron will raise $32 million through the placement of about 1.5 billion shares, and plans to raise a further $5 million under the share purchase plan.
The proceeds from the raising will allow Heron to immediately begin construction work at Woodlawn, with first production targeted for late 2018.
“Our operations team and our EPC lead contractor, Sedgman, are ready to commence construction of the project immediately upon securing shareholder approval for the transaction, with the aim of commissioning Woodlawn in late 2018 and entering an increasingly supply constrained zinc market,” Heron managing director Wayne Taylor said.
“We welcome Orion to the company’s share register and their nominee director, Peter Rozenauers, to the board.
“We also welcome Castlelake as a new major shareholder and their nominee director, Ricardo De Armas, to the board.
“And we acknowledge the strong and continued support of our major shareholder, Greenstone, for their ongoing and increasing commitment to the company’s vision at Woodlawn.
“The backing of the major equity investors Greenstone and Castlelake provides a very strong endorsement of the potential for our project.”
Euroz acted as global coordinator and lead manager to the placement, while Numis Securities and Paradigm Capital acted as co-managers.
Azure Capital acted as financial adviser to Heron, while Wright Legal and Allion Partners acted as legal advisers.
Shares in Heron were 16.4 per cent lower to 7.1 cents each at the close.
