18 Mar 2016 12:43
Herencia Resources plc
("Herencia" or "the Company")
Additional Funds for Herencia
Working Capital Update
Loan from Oriental Darius
As part of the Company's ongoing funding negotiations, the Company is pleased to announce that today they have received a $50,000 loan from Oriental Darius Co. Ltd ("Darius"), who hold 4.69% of the issued share capital of the Company. The Loan is interest free with a 6 month term and, subject to shareholder approval, is convertible into ordinary shares at an exercise price of £0.0001. These funds form part of a larger funding facility currently being finalised with both Darius and the Australian Special Opportunity Fund ("Lind Partners") two of the Company's shareholders. Both shareholder groups have indicated that subject to completion of the documentation an additional $200,000 will be made available to the Company before 6 April 2016.
The directors believe that receipt of these funds will bolster the Company's working capital requirements to allow the Next Minerals due diligence ("DD") on the Company's Picachos project to be completed. The successful completion of the DD and execution of the formal documentation on the Next Mineral Transaction, would trigger an initial $2 million cash payment to the Company on the 30 April 2016 (see RNS dated 3 February 2016), although there is no guarantee that this transaction will occur.
Update on Loan from John Moore
In addition, the Company confirms that the Chairman, John Moore, has removed the conditions from the loan facility made available to the Company on 7 March 2016, and accordingly the balance of US$210,000 has now been drawn down by the Company. The conditions for repayment remain as set out in the announcement of 7 March 2016. This money will be used by the Company to pay the Piccachos option payment which is due next week.
After the payment of the Piccachos option payment, the remaining monies, including the loan from Darius set out above, gives the Company approximately three weeks of working capital and if no additional funds are identified before early April 2016, the directors do not believe the Company will be able to continue trading after that date.
About Herencia
Herencia Resources plc is an AIM quoted exploration and development company operating in Chile. In addition to the Picachos Copper Project, the Company also has the Guamanga Copper Project and the 70% owned Paguanta Project, a high grade silver-zinc-lead project located in northern Chile. The Company's corporate office is located in Perth and the main technical and management office is located in Santiago, Chile where it has been operating for over eight years.
For further information please contact:
Graeme Sloan, Herencia Resources plc +61 8 9481 4204
Katy Mitchell/Nick Prowting WH Ireland Limited (NOMAD) +44 161 832 2174
Jon Belliss, Beaufort Securities Limited (UK) +44 207 382 8300
References in this announcement to exploration results and potential have been approved for release by Mr Graeme Sloan (BAppSc Mining Engineering WASM) who has more than 20 years relevant experience in the field of activity concerned. Mr Sloan is a Member of the Australasian Institute of Mining and Metallurgy. Mr Sloan has consented to the inclusion of the material in the form and context in which it appears.
Further background details on the Company can be found at www.herenciaresources.com
**ENDS**