Heron Resources (ASX:HRR, TSX:HER) has secured an equity package of up to $20 million from Greenstone Resources to advance development of its Woodlawn zinc-copper project in New South Wales.
The company will initially raise $6.38 million through a placement of 54.1 million shares priced at $0.126 to the specialist London-based mining and metals private equity fund.
This represents a 22% premium to the 30 day volume weighted average price of HRR shares (A$0.103) on the ASX and is an outstanding result given current challenging market conditions.
Greenstone can make additional investments of up to $13.2 million, or to take its interest in Heron up to 19.9%, as part of the potential staged development of Woodlawn.
Heron will have access to Greenstone’s technical and financial expertise. The fund will also nominate a director the company’s board.
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