PERTH (miningweekly.com) – ASX-listed Heron Resources has struck a farm-in agreement with Sky Metals over two of its noncore projects in New South Wales.
Under the earn-in agreement over the Cullarin and Kangiara projects, Sky will be required to spend A$400 000 on exploration within the first year, and a further A$1.6-million over the following three years, to earn an 80% interest in the project.
Heron will be free carried until either the completion of a definitive feasibility study, or Sky spending a total of A$10-million on the projects.
“The agreement provides Heron an opportunity to generate value from a number of noncore tenements while it focuses on the business of maximizing the return from our operations at Woodlawn,” said Heron chairperson Stephen Dennis.
Heron last week unveiled a A$91-million funding package to allow for the commissioning of its Woodlawn copper/zinc project, mitigating the financial impacts of a seven-month delay in construction.
The funding package will consist of a A$35-million non-renounceable entitlement offer of new shares, priced at 20c a share, and a $35-million convertible note provided by Castlelake, Greenstone Resources and Orion Mine Finance Group.
The funding will also include a $3-million stream over zinc by-product and an extension of the maturity date of the existing $60-million loan, by 12 months from December 2022 to December 2023.