Herald raises funds to speed up N. Sumatra zinc/lead project

Australian miner Herald resources limited announces on Friday the proposed share placement that would raise A$3.7 million for the company.

The company said proceed would be used to speed up development of its Dairi zinc/lead project in North Sumatra, where the company has 80 percent stake.

??As the development of Dairi zinc/lead project draws closer, we are particularly keen to maintain momentum while the financing package and offtake agreement are being put together. We believe that by using our own equity now to do the engineering design work, acquire land, build roads, etc. rather than waiting to draw down on finance facilities, we can shorten the construction lead times. This will hopefully allow us to be in production sooner and take advantage of commodity price and treatment charges that are very much in our favor at the moment,? the company said in a statement.

Herald, together with 20 percent partner PT. Aneka Tambang Tbk. is planning to develop Dairi zinc/lead project to process 1 MTPA of ore, producing 220,000 and 100,000 tonnes of zinc and lead concentrates PA. Capital costs to build the project are estimated at US$118 million.

The company has mandated Macquarie bank to raise senior debts and is in talks with smelters for offtake and subordinate loan. (alex)