The company suspended operations at Woodlawn in March as it worked through a strategic process to get the best value out of the operation.

Woodlawn will remain on care and maintenance until Heron and its shareholders agree on a solution.

Heron believes that there is still “significant inherent value” in Woodlawn and that the suspension of operations is the right decision.

“It has been a challenging time for Heron since taking the difficult but right decision to suspend operations at Woodlawn in March,” Heron chief executive Tim Dobson said.

“It is pleasing that Heron’s key stakeholders have agreed to provide a clear runway and financial support to execute the strategic process over the next 12 months.”

Throughout the strategic process, Heron is also completing studies and engineering programs to optimise technical issues identified during Woodlawn’s ramp-up period last year.

The studies will include optimising the mine design and scheduling, flotation circuit operation and water usage and balancing.

To support the strategic process, Heron’s major shareholder Castlelake has agreed to provide Hero with a loan of $3.5 million.

This, with the existing cash reserves, will provide Heron with sufficient working capital to get through the strategic process.