Heron pays Argonaut $1m in out-of-court settlement

Perth-based corporate finance group Argonaut Capital Ltd has succeeded in securing an additional $1 million in advisory fees and 2.75 million options in nickel junior Heron Resources Ltd following an out-of-court settlement.

Heron claimed it did not owe Argonaut further advisory fees after the Perth-based corporate advisor secured a benchmark joint venture in relation to Heron's Kalgoorlie Nickel Project with the world's biggest nickel miner, Inco.

As a result of the deal negotiated by Argonaut on Heron's behalf, Inco agreed, subject to technical milestones, to fund the remainder of the cost of the KNP pre-feasibility study, 100 per cent of the cost of any bankable feasibility study, procure all debt project financing and provide 95.5 per cent of any equity funding required for the project. The capital expenditure for the KNP was estimated at $1.4 billion in July 2004.

Argonaut Managing Director Eddie Rigg said that the settlement supported Argonaut's defence of the action, in which it defended its claim for payment of fair and reasonable fees for its success in bringing Heron and Inco together.

"We were entitled to a fair fee for negotiating this outstanding deal for Heron, and we are pleased that we have been vindicated," he said.

"Argonaut's decision to accept options, exercisable at decision to mine, is consistent with our view that the KNP is a potentially world class project and is likely to be developed.

"Argonaut is pleased that this matter has been settled."