Heron non-executive chairman Stephen Dennis said Heron has faced difficult financial and operational challenges getting production started at Woodlawn, with the delayed start-up severely impacting working capital needs.

This is now being addressed, he said, to realise the strong technical and operational value that Woodlawn retains as it moves into full production and achieves nameplate processing capacity.

The project is now economically and technically sound with a strong production profile, he said.

Dennis said the company is aware shareholders are disappointed with the impact the start-up delays have had on the balance sheet, as the board shares their disappointment, but the funding package offers shareholders the best way forward in light of the difficulties.

The funding package is made up of a $35 million share offer, $52 million in convertible notes and $4 million from Orion.

Shareholders can participate in the raising, with shares priced at 20c