26 Feb 2016 13:59
26 February 2016
Herencia Resources plc
("Herencia" or "the Company")
Short Term Loan
The Company confirms today that it has received a $50,000 loan from Lind Partners, a substantial shareholder of the Company (the "Loan").
The Loan is interest free and repayable after 6 months and, subject to shareholder approval, will be convertible into ordinary shares at £0.0001. The directors believe that this will give the Company sufficient funds to continue trading until 7 March 2016. The directors intend that this time will be spent negotiating with Next and Herencia's substantial shareholders to agree a way forward for the Company. In addition, Lind Partners have indicated that they would be prepared to put in a further loan up to $200,000 by 7 March 2016, subject to further negotiations. At this stage there can be no guarantee that any furthers loan will be made or that the Company will be able to continue trading after 7 March 2016. Further announcements will be made in due course.
As Lind Partners is a substantial shareholder, the Loan is a Related Party Transaction under AIM Rule 13 to the AIM Rules for Companies, and the directors of the Company, having consulted with its Nominated Adviser, WH Ireland Limited, consider that the terms of the Loan are fair and reasonable insofar as its shareholders are concerned.
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 and Zoe Alexander, 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**