HERON RESOURCES COMPLETION OF INSTITUTIONAL COMPONENT OF ENTITLEMENT OFFER
Heron Resources Limited (ASX:HRR “Heron” or the “Company”) confirms it is pleased to announce that the institutional component of the 0.7324 for 1 accelerated non-renounceable entitlement offer (Entitlement Offer) announced on 4 October 2019 has closed, raising approximately $11.5 million through the issue of 57,584,627 ordinary shares in the Company. The institutional component was conducted at an issue price of 20 cents per share.
The suspension that was implemented on 16 August 2019 is expected to be lifted at market open on 8 October 2019.
Shares issued under the institutional component of the Entitlement Offer will rank equally with existing fully paid ordinary shares with allotment and quotation of the new shares expected to take place on 15 October 2019.
The close of the institutional component of the Entitlement Offer completes the first stage of the Entitlement Offer.
The second stage is the retail component of the Entitlement Offer (Retail Offer), which will open on 11 October 2019 and is expected to close at 5.00 pm (AEDT) on 22 October 2019.
Under the terms of the Retail Offer, Eligible Retail Shareholders of the Company will be entitled to subscribe for 0.7324 new shares, at an issue price of 20 cents per share, for every 1 existing share held by them at the record date, being today, 8 October 2019 at 5.00pm (AEDT).
Further details of the Retail Offer is set out in the Prospectus dated 4 October 2019 which will be mailed to Eligible Retail Shareholders by 11 October 2019, together with their personalised Entitlement and Acceptance Form. Eligible Retail Shareholders should carefully read the Prospectus to decide whether or not to participate in the Retail Offer.
The Entitlement Offer is underwritten by CL V Investment Solutions LLC and Greenstone Management (Delaware) II LLC in its capacity as a general partner of Greenstone Resources II (Australia) Holdings L.P. (Greenstone) for an aggregate amount of $10.9 million. Patersons Securities Limited and Nascent Capital Partners Pty Ltd are acting as Joint Lead Managers in connection to the Entitlement Offer.
The Company will use the funds to provide additional financial support in connection with the ongoing ramp-up of the Woodlawn Project to nameplate capacity, repay a portion of the outstanding loan under the loan facility provided by OMF Fund II (H) Ltd, provide working capital and to pay the costs of the Entitlement Offer.
Additional information regarding the Entitlement Offer is contained in the announcements and Prospectus released to the ASX on 4 October 2019.
For and on behalf of the Board
This announcement has been prepared for publication in Australia and may not be released or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "US Securities Act") and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US state securities laws.