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- Develop Global (DVP) completes its acquisition of Woodlawn in NSW by purchasing all the shares in Heron Resources (HRR) for an upfront consideration of $30 million
- As stipulated in the terms of a deed of company arrangement (DOCA), Develop has paid $15 million in cash and issued roughly 4.78 million shares at $3.14 per share
- Develop has also reimbursed Orion $500,000 in respect of Woodlawn project care and maintenance costs incurred by Orion prior to completion of the DOCA
- Following completion of the acquisition of Heron, an application has been made to remove Heron from the official list of ASX, which is expected to occur shortly
- DVP shares are down 1.26 and trading at $2.35 at 10:44 am AEST
Develop Global (DVP) has completed its acquisition of Woodlawn in NSW by purchasing all the shares in Heron Resources (HRR) for an upfront consideration of $30 million.
As stipulated in the terms of a deed of company arrangement (DOCA), Develop has paid the upfront consideration comprising of $15 million in cash and the issue of approximately 4.78 million Develop shares at a price of $3.14 per share.
Develop has also reimbursed Orion $500,000 in respect of Woodlawn project care and
maintenance costs incurred by Orion prior to completion of the DOCA.
Managing Director Bill Beament said completion of the Woodlawn acquisition was a
pivotal point in the company’s growth plan and was “an outstanding deal”.
“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,” he said.
Under the cooperation 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.
The Woodlawn underground mine and processing plant was developed by Heron who invested $340 million in the project before it was put on care and maintenance in 2020, and Heron was placed in administration in July of last year.
Following completion of the acquisition of Heron, an application has been made to remove Heron from the official list of ASX, which is expected to occur shortly.
DVP shares were down 1.26 and trading at $2.35 at 10:44 am AEST.
