Heron Resources Limited has secured the full A$240 million funding package required for the construction and ramp-up of its 100% owned Woodlawn Zinc-Copper Project, located in New South Wales, Australia.
The package comprises a loan, equity and stream funding package from subsidiaries of Orion Mine Finance Group for a total of A$129 million, an equity subscription agreement with a subsidiary of existing shareholder Greenstone Resources LP and co-investment parties for A$42 million, an equity subscription agreement from new cornerstone equity investor, Castlelake, L.P. for A$33 million (together, the "Cornerstone Investors"), and the receipt of commitments from various sophisticated and professional investors to subscribe for fully paid ordinary shares in the Company ("Shares") to raise approximately A$32 million.
The company says it will start construction works immediately with first production targeted during late 2018.
Commenting on the funding package, Heron's Managing Director, Wayne Taylor said:
"We are pleased to have delivered a complete funding package that will enable the timely development of Woodlawn. 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.
