Aspiring nickel miner Heron Resources Ltd, which counts global mining giants CVRD Inco and BHP Billiton Ltd among its major shareholders, has completed a $27.8 million capital raising.
Heron said it has completed the book-build for an oversubscribed A$27.8 million private placement at an issue price of $1.20. RBC Capital Markets was sole bookrunner and lead manager of the offering.
The capital raising has been supported by a number of new Australian and International institutional investors in North America, Europe and Asia. The placement funds will be used for completion of the Jump-up Dam scoping study, undertaking of the Jump-up Dam Pre Feasibility Study, trial leaching, environmental studies, mining studies, metallurgical test work, resource definition and general corporate expenses.
BHP Billiton Ltd., an existing shareholder of Heron Resources has supported the placement by subscribing for 2,047,650shares.
Managing Director, Mat Longworth said today that `'the placement has further internationalised Heron's share register and provides the Company with the funding to pursue the 100% owned Jump-up Dam heap leach nickel project, a planned 10,000tpa nickel producer".
The placement will be completed pursuant to the "excluded offer" provisions (Section 708) of the Corporations Act and will be completed within Heron's existing placement capacity without the need for shareholder approval. The placement shares will rank pari passu with Heron's existing ordinary shares.
Following allotment of the new shares and payment of placement fees, Heron will have 202,191,196 ordinary shares on issue, and A$34.8 million in cash.
