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Develop acquires Woodlawn zinc-copper mine in NSW

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Global Mining Review,

Develop has completed the acquisition of the Woodlawn zinc-copper mine in New South Wales (NSW) by purchasing all the shares in Heron Resources Ltd, pursuant to the terms of a deed of company arrangement (DOCA) and the Orders of the Supreme Court of NSW.

In line with the DOCA, Develop has paid the upfront consideration of AUS$30 million to Heron’s secured and unsecured creditors, comprising AUS$15 million in cash and the issue of 4.78 million fully paid ordinary shares in Develop at a deemed issued price of AUS$3.14 per share (being the five trading day volume weighted average of Develop’s shares prior to the date of the agreements with Heron’s secured creditors in respect of the DOCA). Develop has also reimbursed Orion for an amount of AUS$500 000 in respect of Woodlawn project care and maintenance costs incurred by Orion prior to completion of the DOCA.

Under the co-operation deed entered into with Orion, Develop has also agreed to pay up to AUS$70 million to Orion subject to certain milestones being met, which Develop may elect to satisfy in cash or shares.

The Woodlawn underground mine and processing plant was developed by Heron, which invested approximately AUS$340 million in the project before it was put on care and maintenance in 2020 and Heron was placed in administration in July 2021.

Develop Managing Director Bill Beament said completion of the Woodlawn acquisition was a pivotal point in the company’s growth plan:

“This is an outstanding deal which has delivered Develop a world-scale project complete with an underground mine and processing infrastructure.

“We have used the three months since we agreed the purchase to devise a full exploration strategy with the aim of converting Inferred Resources, extending the mineralised lenses, which we know are open at depth, and drill testing the EM conductors identified by leading consultants NewExco.

“Now we can start implementing that strategy.”

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Australian mining news Copper mining news