PERTH (miningweekly.com) – ASX-listed metals developer Heron Resources has completed the draw-down of a $16-million silver stream prepayment from Orion Mine Finance, to help fund the development of the Woodlawn zinc/copper project, in New South Wales.
The silver stream prepayment forms part of a A$240-million project finance package, which also includes an equity subscription agreement with a subsidiary of existing shareholder Greenstone Resources and coinvestment parties for A$42-million and an equity subscription agreement from new cornerstone equity investor, Castlelake, for A$33-million.
“The draw-down of the $16-million silver stream prepayment is a significant milestone for the Woodlawn project finance and was subject to the completion of specific conditions precedent, all of which have been satisfied,” said Heron MD Wayne Taylor.
“The prepayment is being drawn-down in accordance with the project timeline, with the funds to be used for Woodlawn plant construction activities.”
Taylor noted that the project is advancing to schedule and once in production, will position the company to capitalise on favourable conditions in the zinc market.
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.