Western Australian explorer Heron Resources has raised almost $38 million after selling its shares in takeover target Mineral Resources.
According to a statement released this morning, Heron sold 5,324,324 Mineral Resources shares to Polaris Metals as part consideration for the sale of its stake in Polaris.
“The sale was completed at a price of $7.15 resulting in net proceeds to Heron of $37.9 million,” Heron said in the statement.
Heron’s managing director Mathew Longworth said that the board was happy with the sale price and the new influx of cash sees the company with a cash reserve of more than $60 million.
He said the new cash position will place Heron well for both existing projects and potential future prospects.
“This strong financial position will enable Heron to complete the assessment of the A1 Gold project, and if warranted, commission a mining operation,” Longworth said.
“Significantly, Heron is now well positioned to pursue additional resource business opportunities.”