Heron Signs New Cooperation Deed with Veolia
March 28 2017 - 11:01PM
Heron Resources Limited (“Heron” or the “Company”)
is pleased to announce that it has entered into a new Cooperation
Deed with Veolia Environmental Services (Australia) Pty Ltd
(“Veolia”) governing the joint use of the Woodlawn Project site.
The entering of a new agreement with Veolia is one of the key
prerequisites for advancing Woodlawn Project financing.
The original Cooperation Deed with Veolia was entered into in
2008 and reflected the project as it was understood at that
time. The 2015 Preliminary Economic Assessment and 2016
Feasibility Study, along with the focus on the proposed underground
mining operations, resulted in a number of technical changes to the
profile of the project at the Woodlawn site. These factors, and
Veolia’s continued development of their activities on site, meant a
detailed review and update of the previously agreed Cooperation
Deed was required to ensure that it remained relevant and complete
with respect to the interaction between the operations of Veolia
and Heron at Woodlawn.
The new agreement deals with the respective Heron and Veolia
areas, rights and responsibilities associated with the joint use of
the site. Specifically the agreement covers:
- Delineation of Heron and Veolia area of operations;
- Establishment of a committee comprising Heron and Veolia
representatives to consider site interaction aspects;
- Heron’s right to purchase the freehold lands covering its area
of operation;
- Division of site rehabilitation obligations and provision of
compost material from Veolia for rehabilitation;
- Working offset distances and controls to minimise impact on
operations;
- Management of site water with an overall principle of
maintaining a zero discharge site; and
- Commercial terms including insurance coverage, environmental
bond and the provision of a bank guarantee.
Woodlawn Financing
The Company is progressing the Woodlawn financing discussions
with a select number of parties. These discussions are well
advanced and Heron is currently in the process of documenting a
debt and equity financing structure. Completion of this process is
likely to be impacted by the April mid-month period around Easter
and ANZAC Day. Whilst the Company expects to finalise the
financing, it should be noted that there is no certainty that these
discussions will be concluded successfully.
Other activities that are set for completion as part of the
financing process include:
- Concentrate Offtake – negotiations are almost complete with the
selection of an off-taker for Woodlawn zinc, copper and lead
concentrates to be made soon.
- Engineer, Procure and Construct (EPC) contract – contractual
discussions and contract documentation is well advanced with
execution expected at the time financing is concluded.
- Environmental Protection License – the EPA has indicated that
it is in a position to issue this license to Heron upon confirming
acceptance from both Veolia and Heron of the draft terms and
conditions of their respective EPL’s.
Further updates will be provided as these items are
completed.
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.
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)