Heron Resources Limited (“Heron” or the “Company”)
is pleased to announce that it has entered into an off-take
agreement for the zinc, copper and lead concentrates to be produced
from its wholly-owned Woodlawn Zinc-Copper Project (“Project”)
located near Tarago, 250km southwest of Sydney, New South Wales,
Australia.
Louis Dreyfus Company Metals (“LDC Metals”) has been awarded the
base metal concentrate off-take from the Woodlawn Project from
commencement of production through to the end of 2021, a period of
approximately three and a quarter years. The off-take
contract covers 100% of the zinc, copper and lead concentrates to
be produced over this period.
Heron Resources Managing Director and CEO, Mr Wayne Taylor,
commented:
“Over the past 12 months we have run a highly competitive
process for the much-sought after concentrates from the Woodlawn
Project, and we are very pleased to have reached an agreement with
LDC Metals, a large and experienced concentrate trader with an
excellent reputation in the market.
Zinc concentrates are particularly in short supply in the global
marketplace, which is expected to remain tight for the next few
years, and this has resulted in the company agreeing attractive
commercial terms for 100% of mine output during the critical first
few years of production at Woodlawn”
Once at steady state, the Woodlawn Project is expected to
produce approximately 70,000dmt (dry metric tonnes) of zinc
concentrates, 30,000dmt of copper concentrates, and 25,000dmt of
lead concentrates annually from the processing of a combination of
underground ore and reclaimed tailings ore. In addition to revenue
being provided from the primary metal in each of the concentrates
(zinc, copper and lead), by-product revenue will be generated by
the gold and silver content in the lead and copper
concentrates.
The off-take with LDC Metals is a key milestone in the Company’s
pre-financing activities and contemplates the shipment of Woodlawn
concentrates from either Port Kembla or Port Botany in lot sizes
that will allow the Company to manage working capital requirements
as well as securing bulk shipping freight rates. It is anticipated
that the Woodlawn concentrates will be destined for further
processing to final metal in major Asian markets.
LDC Metals CEO, Mr Paul Akroyd, commented: “We are very pleased
to be able to partner up with Heron Resources and support them for
the development of the Woodlawn Project. This is fully aligned with
our strategy to build upon our existing Australian activity and
continue to provide solutions for the needs of the Australian
mining industry”
About LDC Metals
A wholly owned subsidiary of Louis Dreyfus Company, LDC Metals
is among the top global merchants of copper, zinc and lead
concentrates and refined base metals, and manages numerous base
metal offtake arrangements in Australia and across the globe.
Founded in 1851, Louis Dreyfus Company (LDC) is a leading
merchant and processor of agricultural goods, with activities
spanning the entire value chain, across a broad range of business
lines. LDC originates, processes and transports approximately 81
million tons of products every year, is active in over 100
countries and employs more than 21,000 people globally at peak
season.
About Heron Resources Limited:
Heron’s primary focus is the development of its 100% owned, high
grade Woodlawn Zinc-Copper Project located 250km southwest of
Sydney, New South Wales, Australia.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
INFORMATION
This report contains forward-looking statements and
forward-looking information within the meaning of applicable
Canadian securities laws, which are based on expectations,
estimates and projections as of the date of this report. This
forward-looking information includes, or may be based upon, without
limitation, estimates, forecasts and statements as to management’s
expectations with respect to, among other things, the timing and
amount of funding required to execute the Company’s exploration,
development and business plans, capital and exploration
expenditures, the effect on the Company of any changes to existing
legislation or policy, government regulation of mining operations,
the length of time required to obtain permits, certifications and
approvals, the success of exploration, development and mining
activities, the geology of the Company’s properties, environmental
risks, the availability of labour, the focus of the Company in the
future, demand and market outlook for precious metals and the
prices thereof, progress in development of mineral properties, the
Company’s ability to raise funding privately or on a public market
in the future, the Company’s future growth, results of operations,
performance, and business prospects and opportunities. Wherever
possible, words such as “anticipate”, “believe”, “expect”,
“intend”, “may” and similar expressions have been used to identify
such forward-looking information. Forward-looking information is
based on the opinions and estimates of management at the date the
information is given, and on information available to management at
such time. Forward-looking information involves significant risks,
uncertainties, assumptions and other factors that could cause
actual results, performance or achievements to differ materially
from the results discussed or implied in the forward-looking
information. These factors, including, but not limited to,
fluctuations in currency markets, fluctuations in commodity prices,
the ability of the Company to access sufficient capital on
favourable terms or at all, changes in national and local
government legislation, taxation, controls, regulations, political
or economic developments in Canada, Australia or other countries in
which the Company does business or may carry on business in the
future, operational or technical difficulties in connection with
exploration or development activities, employee relations, the
speculative nature of mineral exploration and development,
obtaining necessary licenses and permits, diminishing quantities
and grades of mineral reserves, contests over title to properties,
especially title to undeveloped properties, the inherent risks
involved in the exploration and development of mineral properties,
the uncertainties involved in interpreting drill results and other
geological data, environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins and flooding,
limitations of insurance coverage and the possibility of project
cost overruns or unanticipated costs and expenses, and should be
considered carefully. Many of these uncertainties and contingencies
can affect the Company’s actual results and could cause actual
results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, the Company.
Prospective investors should not place undue reliance on any
forward-looking information. Although the forward-looking
information contained in this report is based upon what management
believes, or believed at the time, to be reasonable assumptions,
the Company cannot assure prospective purchasers that actual
results will be consistent with such forward-looking information,
as there may be other factors that cause results not to be as
anticipated, estimated or intended, and neither the Company nor any
other person assumes responsibility for the accuracy and
completeness of any such forward-looking information. The Company
does not undertake, and assumes no obligation, to update or revise
any such forward-looking statements or forward-looking information
contained herein to reflect new events or circumstances, except as
may be required by law. No stock exchange, regulation
services provider, securities commission or other regulatory
authority has approved or disapproved the information contained in
this report.
For further information regarding Heron please visit www.heronresources.com.au or contact:
Heron Resources
Mr Wayne Taylor
Managing Director and CEO Heron Resources Ltd
Tel: +61 2 9119 8111
Email: heron@heronresources.com.au
Heron (Canada)
Tel: +1 647-862-1157 (Toronto)