Develop Global Limited, formerly known as Venturex Resources, has agreed to acquire the Woodlawn zinc-copper project in NSW for A$30 million and success-driven milestone-related payments of up to A$70 million.
The Woodlawn underground mine and processing plant was developed by Heron Resources, which invested A$340 million in the project before it was put on care and maintenance in 2020. Heron was placed in administration in July 2021.
Develop Managing Director Bill Beament said Woodlawn was “an exceptional acquisition opportunity.”
“Such outstanding acquisition opportunities are extremely rare,” Mr Beament said.
“Woodlawn hosts future-facing metals in a tier-one location and meets all our criteria for creating shareholder value.
“It is a substantially-developed project with extensive underground infrastructure and a new processing plant. The previous owners invested ~A$340m to re-establish the operation.”
From 1978 until 1982 – when it was shut down due to low commodity prices and a lack of drilling – Woodlawn produced 13.8 million tonnes at 19.7% ZnEq3 (Zinc Equivalent).
In 2017, Heron began redeveloping Woodlawn, investing $340 million in resource/reserve definition, underground infrastructure, and a 1.0Mtpa processing plant.
However, in 2020, the Company faced ramp-up concerns and COVID-related issues, coupled with a corporate strategy that was not appropriate for this type of operation.
As a result, the project was placed on care and maintenance in 2020.
