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ASX-listed Heron Resources has gone into voluntary administration after failing to secure funding for its Woodlawn zinc/copper project, in New South Wales.

The company in August last year launched a strategic process to explore various options for the mine, including refinancing, joint venture and either a partial or complete divestment, after operations at the mine were suspended in March 2020 with the emergence of the Covid-19 pandemic.

Heron said that the company had been unable to secure a suitable transaction through the strategic process, despite having conducted a comprehensive and wide-ranging process, engaging with more than 90 organisations in an effort to secure a suitable outcome for its stakeholders and to establish a pathway to restart Woodlawn.

The company noted that with creditor forbearance coming to an end next month, and none of the alternatives investigated during the strategic process being capable of implementation before then, and given the current capital structure of the company, the administration appointment was made with a view to restructure and recapitalize the company.

Administrator Chris Hill, from FTI Consulting, said on Friday that the care and maintenance regime at Woodlawn would continue while the process to restructure and refinance the business is undertaken, with the objective of bringing it out of administration as soon as possible.