Develop has completed its acquisition of the Woodlawn zinc-copper mine in New South Wales, purchasing all the shares from former owner Heron Resources.
Develop has paid the upfront consideration of $30 million, comprising $15 million in cash and the issue of 4,782,859 fully paid ordinary shares in Develop at a deemed issued price of $3.14 per share.
The Woodlawn underground mine and processing plant had been developed by Heron, which invested $340 million in the project before it was put into care and maintenance in 2020, and Heron subsequently placed in administration in July 2021.
Develop has also reimbursed Orion for an amount of $500,000 in respect of Woodlawn project care and maintenance costs incurred by Orion. Under the co-operation deed entered into with Orion, Develop has also agreed to pay up to $70 million to Orion subject to certain milestones being met, which Develop may elect to satisfy in cash or shares.
Develop managing director Bill Beament said completion of the Woodlawn acquisition was a pivotal point in the company’s growth plan.
“This is an outstanding deal which has delivered Develop a world-scale project complete with an underground mine and processing infrastructure,” he said.
“We have used the three months since we agreed the purchase to devise a full exploration strategy with the aim of converting Inferred Resources, extending the mineralised lenses, which we know are open at depth, and drill testing the EM conductors identified by leading consultants NewExco.
“Now we can start implementing that strategy.”
An application has been made to delist Heron from the Stock Exchange.