Herald to raise $100m for Dairi zinc, lead mine

West Perth-based Herald Resources Ltd has announced plans to raise $100 million in a capital raising after securing environmental approval for work on its Dairi zinc and lead mine in Indonesia, the company has announced.

The full text of a company announcement is pasted below

The Company has previously advised that it is awaiting certain approvals in order to proceed to full development of the Dairi Project, and that the Minister of Forestry had advised that a Presidential Decree is required in order for the Ministry to issue the necessary approvals for underground mining in forest areas. Once the Presidential Decree is issued, the Company would expect that the Minister of Forestry would grant forestry approval for the Dairi Project
shortly thereafter.

The Company and its JV partner PT Antam yesterday met with the Indonesian Minister of State Secretariate, who has been charged with responsibility for overseeing approvals processes such as the one the Company is currently facing. As a result of this meeting, the Company believes that progress is being made on both the Presidential Decree and the forestry approval.

Further to previous announcements regarding the financing of the Dairi Project and the projected capital expenditure required to bring the project to production, the Company advises that upon receiving the forestry approval, the Company intends to raise approximately $100 million of equity via a capital raising. The Company is currently
consulting with its adviser Euroz Securities Ltd in relation to the most appropriate form and structure of the proposed raising.