TIDMHER
RNS Number : 5651D
Herencia Resources PLC
27 April 2017
Herencia Resources plc
("Herencia" or the "Company")
Herencia Concludes Successful Raising
of Approximately GBP1.0m (US$1.2m)
Herencia Resources plc (AIM: HER) is pleased to announce the
successful placement of approximately US$1.2m from the issue of
2,111,700,473 new ordinary shares at 0.045 pence ("Placing
Shares").
Herencia, is a copper explorer and developer in central Chile
and has a number of high quality copper assets in well-endowed
copper producing region. The assets are characterised extensive
copper mineralisation which has been accessed via adits, surface
pits and extensive localised drilling. Whilst the company has been
through a difficult period corporately the Directors believe these
copper assets present an exceptional opportunity for resource
enhancement and expansion on these known mineral occurrences.
Additionally, the regional copper and metals endowment and the
associated production facilities provide the opportunity to expand
Herencia's operating base over time.
The new Directors are committed to rebuilding Herencia as a
viable and stable exploration and development entity and will seek
to maximise value from this important mineral region.
It is envisaged the funds raised will be used for the following
initiatives:
-- Advancing the Picachos and Pastizal projects;
-- Reducing the creditors in Chile, and
-- Other working capital purposes.
Following the capital raising there will be 6,758,972,388
Ordinary Shares.
This announcement includes inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Strong Shareholder Interest
Following the appointment of new Directors, Mr Peter Reeve and
Mr Jeff Williams discussions with existing and new shareholders
have been held to source additional funds. The strong support from
new shareholders in the placement demonstrates the investment
communities view of the potential in the Herencia's copper assets
in Chile.
Admission and Dealings
Application has been made for the Placing Shares to be admitted
to trading on AIM, and dealings in the Placing Shares are expected
to commence on 8 May 2017.
The Company's pivotal land position
Following a more rigorous geological interpretation in the next
3 months Herencia will prepare a comprehensive drill plan which
should be announced prior to the Annual General Meeting in late
June 2017. The plan will engage wide spaced drilling on both
Picachos and Pastizal leases to enhance the existing mineral copper
resources.
Surrounded by excellent infrastructure
1. La Serena and airport 50 kms from site
2. Good road access and power and water nearby
3. Office and accommodation at Andacollo 5kms from site
4. Three toll treatment options for future Picachos ore
-- One government treatment plant
-- Two private treatment plants
Work to date
-- Geological and structural mapping of all tenements
-- Comprehensive surface and underground XRF and laboratory sampling program
-- Over 1.0km of mine tunnels sampled (6 areas)
-- Phase One Drill Program completed in 2014: (1) and (2)
results of a 32-hole program including;
-- PP14011 25m at 1.24% Cu, 12.1g/t Ag
-- PP14019 91m at 1.42% Cu, 13.5g/t Ag incl.
20m at 3.10% Cu, 25.4g/t Ag
-- PP14020 18m at 1.33% Cu, 6.1g/t Ag incl.
10m at 2.04% Cu, 8.5g/t Ag
-- PP14022 45m at 1.76% Cu, 13.6g/t Ag incl.
34m at 2.09% Cu, 16.6g/t Ag
Total Voting Rights
Following the issue of the Placing Shares, the total number of
shares in issue is 6,758,972,388 . There are no shares held in
treasury. Therefore, the total number of voting rights in the
Company is 6,758,972,388. This figure may be used by shareholders
in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest
in, or a change to their interest under the Disclosure and
Transparency Rules
Working Capital Position
The Directors believe these funds will be sufficient to satisfy
the Company's working capital requirements for the foreseeable
future and these funds will be used to repay creditors, to advance
the Company's remaining assets (as set out above) and for working
capital purposes. Further updates will be provided in due
course.
Important notices
This notice may not be released or distributed to the United
States. This notice does not constitute an offer to sell, or to
buy, securities in the United States. The New Ordinary Shares
offered and sold in this Placing will not be registered under the
Securities Act of 1933 or any securities laws of any State or any
jurisdiction of the United States. The Company has not been, and
will not be, registered under the US Investment Company Act of
1940, as amended, and investors will not be entitled to the
benefits of that Act. Neither this announcement nor any copy of it
may be taken or transmitted into the United States of America or
its territories or possessions (the "United States"), or
distributed, directly or indirectly, in the United States, or to
any U.S Person as defined in Regulation S under the Securities Act
1933 as amended, including U.S resident corporations or other
entities organised under the laws of the United States or any state
thereof or non-U.S branches or agencies of such corporations or
entities or into Canada, Australia, Japan, South Africa or the
Republic of Ireland. Neither this announcement nor any copy of it
may be taken or transmitted into or distributed in Canada,
Australia, Japan, South Africa or the Republic of Ireland, or any
other jurisdiction which prohibits the same except in compliance
with applicable securities laws. Any failure to comply with this
restriction may constitute a violation of United States or other
national securities law.
This announcement may include 'forward-looking statements'. All
statements other than statements of historical facts included
herein, including, without limitation, those regarding the
Company's financial position, business strategy, plans and
objectives of management for future operations (including
development plans and objectives relating to the Company's
business) are forward-looking statements. Such forward-looking
statements are based on a number of assumptions regarding the
Company's present and future business strategies and the
environment in which the Company expects to operate in future.
Actual results may vary materially from the results anticipated by
these forward-looking statements as a result of a variety of
factors. These forward-looking statements speak only as to the date
of this announcement and cannot be relied upon as a guide to future
performance. The Company expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statements contained in this announcement to
reflect any changes in its expectations with regard thereto or any
change in events, conditions or circumstances on which any
statement is based.
For further information please contact:
Peter Reeve, Herencia Resources plc +61 8 9481 4204
Jeff Williams, Herencia Resources plc +61 8 9481 4204
Katy Mitchell, WH Ireland Limited (NOMAD) +44 161 832 2174
Jon Belliss, Beaufort Securities Limited (UK) +44 207 382
8300
Further background details on the Company can be found at
www.herenciaresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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