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Zinc explorer Heron gets waiver on debt facility

30th September 2019

By: Reuters

  

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Australia's Heron Resources said on Monday it received an extension to waivers regarding a loan facility, giving the cash-strapped zinc explorer more time to come up with a funding plan.

A cash crunch due to a seven-month delay in the completion of construction at the company's zinc and copper-bearing Woodlawn mine in New South Wales prompted Heron Resources to enter a standstill agreement with its lender in August.

The agreement had given the company time until Sept. 27 to come up with a financing package that addresses its potential short-term capital crunch.

Heron's cash woes come at a time when zinc prices have dropped sharply due to a supply glut, with prices in London hitting a three-year low of $2 190 at the start of the month.

The lender has now agreed to an extension, waiving potential non-compliance with provisions contained in the senior loan facility and certain other liquidity level requirements, Heron said in a statement.

Edited by Reuters

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