Heron Resources has confirmed that the Woodlawn technical review conducted by independent industry specialists found the project not facing any significant ongoing technical or operational flaws, and that the plant is now progressing to a revised ramp-up schedule following delays during construction.
|Woodlawn Exploration Tenements|
Heron Resources states that it is satisfied with current ramp-up progress, which is resulting in the routine production of marketable zinc, lead and copper concentrates.
“Further work with external advisors is continuing to quantify additional working capital needs, and to structure a financing package that addresses a potential short-term working capital deficiency which has been identified,” said the Company in a statement.
The requirement for additional capital is largely the result of an effective delay of seven months in project construction completion.
“Heron and its major shareholders remain confident in the future of Woodlawn, and that once the current working capital deficiency has been addressed, the project will continue to ramp-up to its nameplate capacity.”
Heron is engaged in discussions with its major shareholders and senior debt provider with the objective of finalising a finance package which addresses the Company’s working capital requirements.
To facilitate these discussions, the senior debt provider has agreed to a standstill arrangement until 27 September 2019 to waive any potential non-compliance with provisions contained in the senior loan facility and stream agreement that relate to maintaining liquidity levels as well as other technical matters.
The voluntary suspension of Heron from trading on ASX will remain in place while the Company works to finalise discussions with its major shareholders and debt providers.