Herald looking to fast-track Dairi
Herald looking to fast-track Dairi
Miningnews, Desember, 10, 2005
HERALD Resources is looking to raise $3.7 million in a bid to shorten construction lead times at its flagship Dairi zinc-lead project in
The emerging miner has already raised $2.6 million through the placement of 4.75 million shares at 55c to undisclosed institutional and professional investors, and is looking to raise a further $1.1 million through a share purchase plan, offering shares at 55c.
Herald said the share placement provided the opportunity to broaden the institutional presence on its register and maintains the "momentum" of the project while the financing package and offtake agreements are being put together.
The company said by using its own equity to construct roads, acquire land and conduct engineering design work, rather than drawing down on finance facilities, construction lead times can be shortened and allow production to start sooner.
Herald is looking at first production by the first quarter of 2007.
The project is expected to cost around $US118 million ($A160 million) to develop, with production put at around 220,000 tonnes of zinc concentrate and 100,000t of lead concentrate annually over a mine life of seven years. Cash operating costs have been put at $US0.31 per pound of zinc.
A consortium of banks (lead by Macquarie Bank) mandated to provide senior finance facilities has been undertaking due diligence, with the work possibly completed by the end of the month.
The Dairi project is a joint venture between Herald (80%) and local Indonesian outfit PT Antam (20%).
Shares in Herald hit a 52-week high of 99c in January before slipping to a 52-week low of 53c in late April. The stock remained was up 1c (1.6%) during midday trade to 63.5c.