Nickel explorer Heron Resources will merge its iron ore interests into another junior explorer, Echelon Resources.

Heron said it had been assembling an iron ore package for six years as part of a stainless steel strategy but since decided its nickel projects were not suited to stainless steel production.
Heron will receive 25 million shares in Echelon and 10 million performance options. Echelon is seeking $3 million via the issue of 11.2 million shares at 27 cents each to fund exploration of the assets over the next two years