26 Jun 2013 07:00
Herencia Resources plc
("Herencia" or "the Company")CHAIRMAN'S AGM STATEMENT
Speaking at today's Annual General Meeting of Herencia Resources plc, the Chile focused mining exploration and development group, the acting Company Chairman, Mr John Russel will make the following statement.
" The past twelve months have been a very important period for Herencia. Under the stewardship of Graeme Sloan, the group's shareholders will be encouraged by the great strides that have been made. We have made excellent progress as we have followed our strategy to move from a pure exploration company towards becoming a full-scale multi project mining development group. Recently, we have made two important milestone announcements. I will recap on their importance and what they could mean for our shareholders.
" At the end of May, we announced the conclusions of a positive Feasibility Study at our flagship Pagunata project. These results confirmed the excellent potential that the project offers to shareholders. The next step in the development of our Paguanta project is the lodgement of the mine permit application and a continuation of post feasibility works with the aim to target mine production in 2015 depending on necessary approvals. We believe this has all the hallmarks of being a first class project. We have high hopes for this mine to be potentially extended both in terms of its scale and the life of the mine. Importantly, we have a number of options available to the Company for how we fund the development costs, including stream financing and off take agreements. We are exploring all the options as we move forward.
" The second major announcement was the news of our Joint Venture with OZ Minerals, a major Australian mining company. This agreement , which is still subject to due diligence, is linked to our second major project, Guamanaga which is a Copper-Gold exploration project in Northern Chile. This deal could potentially see OZ Minerals fund up to US$13 million in exploration and development and at OZ's election, could also provide funds for Herencia to meet their portion of the development funds to take the project through to production. This is another very exciting project that could potentially become a first class mine.
" Looking forward, we believe that the future for Herencia is excellent. We have a first class team based in Chile. Having them on the ground is giving us the opportunity to explore the potential in a number of exciting schemes. We have established a first class reputation within the mining community in Chile and the Board is confident that by establishing strong relationships this will enable us to evaluate future opportunities and help us to drive the company forward and deliver returns for our shareholders. In conclusion, the future for the Company is bright indeed and on behalf of the Board, I look forward to the anticipation of further good news to come."
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Date: 26 June 2013
For further information, please contact:
Graeme Sloan, Herencia Resources plc +61 8 9481 4204
Katy Mitchell, WH Ireland Limited +44 161 832 2174
Simon Courtenay, Broker Profile +44 207 448 3244
Further background details on the Company can be found at www.herenciaresources.com