Greenstone Resources L.P.

Greenstone Resources L.P.

July 04, 2017 08:56 ET

Greenstone signs agreement for additional investment in Heron Resources

GUERNSEY, CHANNEL ISLANDS--(Marketwired - July 4, 2017) - Greenstone Resources L.P. is pleased to announce that its affiliate and nominee, Greenstone Management (Delaware) LLC, acing in its capacity as general partner of Greenstone HRR Holdings II L.P., ("Greenstone") has agreed to subscribe for an aggregate of 398,496,241 common shares of Heron Resources Limited ("Heron"), at a price per common share of Cdn$0.07, for aggregate gross proceeds of US$21,200,000 (approximately Cdn$27,895,000) (the "Greenstone Subscription"). The Greenstone Subscription forms part of a larger private placement by Heron (the "Private Placement"), as disclosed by Heron in its press release of June 30, 2017.

The Greenstone Subscription is expected to occur in two separate tranches. In connection with the first tranche ("Tranche 1"), Greenstone is expected to acquire an aggregate of 30,075,964 common shares of Heron. Pursuant to legal requirements applicable to Heron, completion of Tranche 2 is subject to receipt of approval of shareholders of Heron ("Shareholder Approval"). Assuming Heron obtains the Shareholder Approval at a meeting of its shareholders (expected to be held in the second half of August 2017) and all other conditions precedent to completion are met, Greenstone will acquire a further 368,420,277 common shares of Heron ("Tranche 2").

Assuming completion of Tranche 1, Greenstone will acquire ownership of and control over 30,075,964 common shares of Heron. As such and including the 54,131,658 common shares of Heron owned by Greenstone HRR Holdings L.P., a joint actor of Greenstone (the "Joint Actor"), prior to Tranche 1, Greenstone and the Joint Actor will collectively have ownership of and control over a total of 84,207,622 common shares of Heron, representing approximately 16.23% of the total issued and outstanding common shares of Heron (without taking into account any of the common shares proposed to be issued pursuant to the Private Placement), which is an increase of 3.23% to the 13.0% ownership interest of common shares of Heron owned by Greenstone and the Joint Actor prior to completion of Tranche 1.

Assuming completion of Tranche 2, Greenstone and the Joint Actor will acquire ownership of and control over a further 368,420,277 common shares of Heron. As such and including the 84,207,622 common shares owned by Greenstone and the Joint Actor prior to Tranche 2 (assuming completion of Tranche 1), Greenstone and the Joint Actor will collectively have ownership of and control over a total of 452,627,899 common shares of Heron, representing approximately 19.3% of the total issued and outstanding common shares of Heron (without taking into account any of the common shares proposed to be issued pursuant to the Private Placement), which will be an increase of 3.07% to the 16.23% ownership interest of common shares of Heron collectively owned by Greenstone and the Joint Actor prior to completion of Tranche 2 (assuming completion of Tranche 1).

Greenstone is a private equity fund specialising in the mining and metals sector. The Greenstone team has over 80 years of experience in the sector covering all aspects of mining project development. Further details on Greenstone can be found at www.greenstoneresources.com.

Greenstone is acquiring the common shares of Heron pursuant to the Greenstone Subscription for investment purposes. Depending on market conditions and other factors, Greenstone advises that it 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 by Greenstone with the applicable securities commission in connection with the transactions will be available on SEDAR at www.sedar.com and can be obtained by contacting Joanna Duquemin Nicolle and Sadie Morrison at Greenstone +44 1481 810 100.

Greenstone's registered office is at:

Greenstone Resources L.P.
1st Floor, Royal Chambers
St Julian's Avenue
St Peter Port, Guernsey

Contact Information

  • Joanna Duquemin Nicolle
    +44 1481 810 100

    Sadie Morrison
    +44 1481 810 100