Heron Resources

A$91m funding package for the Woodlawn Zinc-Copper Project

December 2019

On 4 October 2019, Heron Resources Limited (“Heron”) announced it had secured a A$91 million funding package that will allow commissioning of its Woodlawn Zinc-Copper Project to be completed and see it through to positive cash flow operations.

The funding package consisted of:

  1. A$35 million non-renounceable entitlement offer of new shares at A$0.20 per share, with an accelerated component to provide early funding;
  2. US$35 million (A$52 million) convertible notes provided by Greenstone Resources LP, Orion Mine Finance Group and funds managed by Castlelake, L.P.; and
  3. US$3 million (A$4 million) stream over zinc by-product.

The funding package was approved by shareholders at a general meeting on 5 December 2019 and the transaction completed on 24 December 2019.

Azure advised Heron on all aspects of the transaction, including providing valuation and strategic advice, and negotiation of the relevant transaction agreements.