Greenstone Resources L.P.

Greenstone Resources L.P.

August 20, 2015 10:23 ET

Greenstone Completes Stage 1 Equity Funding Package of AUS$6.8m in Heron Resources

ST PETER PORT, GUERNSEY--(Marketwired - Aug. 20, 2015) - Greenstone Resources L.P. is pleased to announce that its affiliate, Greenstone Management (Delaware) LLC, acting in its capacity as general partner of Greenstone HRR Holdings LP ("Greenstone"), has completed its stage 1 AUS$6.8million investment in Heron Resources Limited ("Heron" or "the Company") announced to the market on 24 July 2015 (the "Placement").

The Placement was priced at AUS$0.126 per share (approximately C$0.122 based on an exchange rate of C$0.9668:AUS$1.00, the Bank of Canada noon rate as of 17 August, 2015) and represents a premium to the trading price of Heron equities at the time the transaction was announced. The Placement funds are to be used for the development of the Company's Woodlawn Project (as defined below) and for working capital and general corporate purposes.

Pursuant to the Placement, Greenstone acquired ownership and control of 54,131,658 ordinary shares (the "Shares"), representing 13.04% of the issued and outstanding ordinary shares of the Company. The Placement has been made within the Company's 15% placement capacity pursuant to ASX Listing Rule 7.1. Greenstone is now Heron's largest shareholder with a 13.04% interest. As noted in Heron's release on July 24, 2015, the agreed arrangements also envisage a potential additional investment by Greenstone of AUS$13.2 million (or such amount as would take Greenstone's interest to up to 19.9% of Heron shares) as a contribution towards the equity funding component of the staged construction of the Company's Woodlawn Zinc-Copper Project ("Woodlawn Project") located in New South Wales, Australia. Any such additional funding is subject to the Company making a decision to proceed with the staged development of the Woodlawn Project, and with Greenstone being satisfied with the proposed terms of any such fundraising.

Greenstone acquired the Shares for investment purposes. Depending on market conditions and other factors, Greenstone may from time to time acquire and/or dispose of securities of Heron or continue to hold its current position. A copy of the early warning report required to be filed with the applicable securities commission in connection with the transaction will be available on SEDAR at www.sedar.com and can be obtained by contacting Jo-Anna Duquemin Nicolle and Sadie Morrisson at +44 1481810100. Greenstone's address is set out below.

Contact Information

  • Greenstone Resources L.P.
    1st Floor, Royal Chambers
    St Julian's Avenue
    St Peter Port, Guernsey
    GY1 3JX
    Channel Islands