Louis Dreyfus Company Metals (LDC Metals) has been awarded the base metal concentrate off-take, from the commencement of production through to the end of 2021, a period of circa 3.25 years.
The off-take contract covers 100% of the zinc, copper and lead concentrates to be produced over this period at the Woodlawn Zinc-Copper Project.
Zinc concentrates are particularly in short supply in the global marketplace, which is expected to remain tight for the next few years.
This has resulted in Heron achieving attractive commercial terms for 100% of mine output during the critical first few years of production at Woodlawn.
Once at steady state, the Woodlawn Project is expected to produce circa 70,000 tonnes of zinc concentrate, 30,000 tonnes of copper concentrate and 25,000 tonnes of lead concentrate annually.
The production will be from the processing of a combination of underground ore and reclaimed tailings ore.
In addition to the revenue being provided from the primary metal in each of the concentrates (zinc, copper and lead), by-product revenue will be generated by the gold/silver content in the lead/copper concentrates.
Importantly, the off-take agreement with LDC Metals is a key milestone in Heron’s pre-financing activities.