Heron suspends Woodlawn operations

HERON Resources has said its suspending work at the Woodlawn zinc-copper operation in New South Wales in response to federal and state restrictions related to the coronavirus and also to “safeguard the financial position of the company”.
Heron suspends Woodlawn operations Heron suspends Woodlawn operations Heron suspends Woodlawn operations Heron suspends Woodlawn operations Heron suspends Woodlawn operations

While the coronavirus is impacting operations, processing has been a big issue at Woodlawn, NSW

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In terms of reopening, Heron said "the suspension will remain in effect until such time that safe and reliable operations can recommence following the relaxation of imposed government restrictions related to the COVID 19 pandemic".

The suspension of operations has been ticked-off by the company's creditor Orion Mine Finance.

Heron had cash of A$59.2 million at the end of 2019.

Despite a fundraising totalling $91 million (involving equity and a convertible note) being completed late last year, Heron said in January the underperformance of Woodlawn compared to its ramp-up plan had seen it initiate "pre-emptive discussions with its lender, key shareholders and other capital providers regarding additional potential sources of financing".

The suspension also comes in the same week new CEO Tim Dobson was slated to begin his employment with Heron following his appointment in January.

The suspension follows Heron suffering a "near death experience" last year mainly due to processing plant issues.

Dobson is a metallurgist by profession.

Heron's debt mid last year totalled US$60 million.

Shares in Heron were unchanged at A2.3c in midday trade, capitalising the company at $11.6 million.

The company's stock was trading at levels around 50c 12 months ago.