Australian zinc explorer Heron Resources gets waiver on debt facility
Australia’s Heron Resources Ltd said on Monday it received an extension to waivers regarding a loan facility, giving the cash-strapped zinc explorer more time to come up with a funding plan.
A cash crunch due to a 7 month delay in the completion of construction at the company’s zinc and copper-bearing Woodlawn mine in New South Wales prompted Heron Resources to enter a standstill agreement with its lender in August.
The agreement had given the company time until Sept. 27 to come up with a financing package that addresses its potential short-term capital crunch.
Heron’s cash woes come at a time when zinc prices have dropped sharply due to a supply glut, with prices in London hitting a three-year low of $2,190 at the start of the month.
The lender has now agreed to an extension, waiving potential non-compliance with provisions contained in the senior loan facility and certain other liquidity level requirements, Heron said in a statement.
(By Rashmi Ashok; Editing by Aditya Soni)