Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the
“Company”) is pleased to announce the successful
completion of its A$141 million1 Equity Funding as part of the full
A$240 million total Woodlawn development funding package announced
to the ASX & TSX on Friday, 30 June 2017.
Highlights
- Woodlawn is fully funded through construction and
ramp-up
- Global mining and private equity cornerstone investors
Greenstone, Orion and Castlelake, on behalf of funds it manages,
secure strategic shareholdings
- Institutional placement heavily oversubscribed and
supported by a number of high quality existing and new
institutional investors
- Full A$5 million raised from the Share Purchase Plan
through take-up by existing shareholders and placement of
shortfall
- Progressing the remaining conditions precedent for the
US$60 million senior debt facility and US$16 million silver
prepayment facility
- Orion’s Peter Rozenauers and Castlelake’s Ricardo De
Armas to be welcomed to the Board as Non-executive
Directors
- Heron on track for first production targeted late 2018
/ early 2019
The Equity Funding comprises a A$104 million1 Cornerstone
Investor Placement to Greenstone Resources LP and co-investors,
Orion Mine Finance Group (“Orion”) and Castlelake LP (“Castleake”),
on behalf of funds it manages, as well as a A$32 million
Institutional Placement. The Equity Funding Package also includes a
A$5 million Share Purchase Plan of which approximately A$3.48
million was subscribed for by existing Heron shareholders with the
shortfall balance of approximately A$1.52 million subsequently
placed to various investors.
A total of approximately 2,001 million shares were issued
pursuant to the Equity Funding at an issue price of $0.07 per share
which rank equally with existing shares on issue.
The other components to the full Woodlawn development funding
package include the US$60M senior debt facility and the US$16M
silver prepayment facility (combined A$100 million1), both being
provided by Orion. The Company is working through the remaining
conditions precedent to these facilities which include, the
establishment of the underground mining and port facility
contracts, an independent engineers report covering the costs to
completion, and other customary requirements for facilities of this
nature. The Company expects to have these completed well prior to
the requirement to draw on these funds and in the case of the
silver prepayment this is expected to be drawn at the end of 2017,
with the senior debt facility being drawn during the first half of
2018.
In conjunction with completion of the Equity Funding, in the
next few days Heron will welcome Orion’s nominee director, Mr Peter
Rozenauers, and Castlelake’s nominee director, Mr Ricardo De Armas,
to the Heron Board as Non-executive Directors.
About Heron Resources Limited
Heron is engaged in the development of base and precious metal
deposits in Australia. Heron’s primary development project is the
high-grade Woodlawn Zinc-Copper Project located 250km southwest of
Sydney, New South Wales, Australia.
[1] Assumes exchange rate of AUD/USD 0.76 as per announcement on
30 June 2017
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)