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Heron needs more cash as Woodlawn ramps up

30th August 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – An independent review into the Woodlawn base metals project, in New South Wales, has supported the project fundamentals, with ASX-listed Heron Resources progressing a revised ramp-up schedule following delays during construction.

The review found that the project was not facing any significant ongoing technical or operational flaws, with Heron saying on Friday that the revised ramp-up schedule is resulting in the routine production of marketable zinc, lead and copper concentrates.

At steady state, Woodlawn is expected to produce 70 000 t/y of zinc concentrates, 30 000 t/y of copper concentrates and 25 000 t/y of lead concentrates.

However, the company noted that the effective seven-month delay in project construction completion has necessitated additional capital requirements, with Heron now engaging in discussions with major shareholders and senior debt providers to finalise a finance package to address the working capital requirements.

To facilitate these discussions, the company’s senior debt provider has agreed to a stand-still arrangement until September 27, to waive any potential noncompliance with the provisions within the senior loan facility, and a stream agreement relating to maintaining liquidity levels, as well as other technical matters.

Heron’s shares will remain suspended from trading on the ASX while these discussions are ongoing.

Edited by Creamer Media Reporter

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