Sydney, Australia, March 29, 2017 (GLOBE NEWSWIRE) -- Heron Resources Limited (“Heron” or the “Company”) is pleased to announce that it has entered into a new Cooperation Deed with Veolia Environmental Services (Australia) Pty Ltd (“Veolia”) governing the joint use of the Woodlawn Project site. The entering of a new agreement with Veolia is one of the key prerequisites for advancing Woodlawn Project financing.
The original Cooperation Deed with Veolia was entered into in 2008 and reflected the project as it was understood at that time. The 2015 Preliminary Economic Assessment and 2016 Feasibility Study, along with the focus on the proposed underground mining operations, resulted in a number of technical changes to the profile of the project at the Woodlawn site. These factors, and Veolia’s continued development of their activities on site, meant a detailed review and update of the previously agreed Cooperation Deed was required to ensure that it remained relevant and complete with respect to the interaction between the operations of Veolia and Heron at Woodlawn.
The new agreement deals with the respective Heron and Veolia areas, rights and responsibilities associated with the joint use of the site. Specifically the agreement covers:
- Delineation of Heron and Veolia area of operations;
- Establishment of a committee comprising Heron and Veolia representatives to consider site interaction aspects;
- Heron’s right to purchase the freehold lands covering its area of operation;
- Division of site rehabilitation obligations and provision of compost material from Veolia for rehabilitation;
- Working offset distances and controls to minimise impact on operations;
- Management of site water with an overall principle of maintaining a zero discharge site; and
- Commercial terms including insurance coverage, environmental bond and the provision of a bank guarantee.
Woodlawn Financing
The Company is progressing the Woodlawn financing discussions with a select number of parties. These discussions are well advanced and Heron is currently in the process of documenting a debt and equity financing structure. Completion of this process is likely to be impacted by the April mid-month period around Easter and ANZAC Day. Whilst the Company expects to finalise the financing, it should be noted that there is no certainty that these discussions will be concluded successfully.
Other activities that are set for completion as part of the financing process include:
- Concentrate Offtake – negotiations are almost complete with the selection of an off-taker for Woodlawn zinc, copper and lead concentrates to be made soon.
- Engineer, Procure and Construct (EPC) contract – contractual discussions and contract documentation is well advanced with execution expected at the time financing is concluded.
- Environmental Protection License – the EPA has indicated that it is in a position to issue this license to Heron upon confirming acceptance from both Veolia and Heron of the draft terms and conditions of their respective EPL’s.
Further updates will be provided as these items are completed.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This report contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws, which are based on expectations, estimates and projections as of the date of this report. This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management’s expectations with respect to, among other things, the timing and amount of funding required to execute the Company’s exploration, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company’s properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development of mineral properties, the Company’s ability to raise funding privately or on a public market in the future, the Company’s future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expect”, “intend”, “may” and similar expressions have been used to identify such forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward-looking information involves significant risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Canada, Australia or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be considered carefully. Many of these uncertainties and contingencies can affect the Company’s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information. Although the forward-looking information contained in this report is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law. No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained in this report.
Heron Resources Mr Wayne Taylor Managing Director and CEO Heron Resources Ltd Tel: +61 2 9119 8111 Email: heron@heronresources.com.au Heron (Canada) Tel: +1 647-862-1157 (Toronto)
