Heron needs more cash as Woodlawn ramps up
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.
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