TIDMHER
RNS Number : 5753Z
Herencia Resources PLC
18 December 2017
Herencia Resources plc
("Herencia" or "HER" or the "Company")
Pastizal and Prodiga agreed share placement
As announced on 24 October 2017, Herencia executed an agreement
with Consultoria y Services Mineros SA for the exploration of
Pastizal ("Pastizal Agreement") As part of the terms of that
agreement 1,250,000,000 Ordinary Shares were to be issued of which
it has been agreed that 580,000,000 ordinary shares will be issued
to CSA at a price of 0.03p, and the balance will be issued as set
out in the summary below.
Accordingly the Company has today issued 580,000,000 Ordinary
Shares to CSA ("CSA Shares"), which represents approximately 6.03%
of the enlarged share capital following admission. CSA do not hold
any other shares in the Company.
Application has been made for 580,000,000 new Ordinary Shares to
be admitted to trading on AIM (the "Admission"), and dealings in
the new Ordinary Shares are expected to commence on or around 20
December 2017.
Following the issue of the new Ordinary Shares the total number
of Ordinary Shares in issue is 9,611,001,360. There are no Ordinary
Shares held in treasury. Therefore, the total number of voting
rights in the Company is 9,611,001,360. 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.
The remaining terms of the Pastizal Agreement are summarised
below:
Pastizal and 50% Prodiga Purchase Agreement
1. A further 670 million HER shares to CSA conditional upon HER
shares averaging at least 0.12 pence for a minimum of 90 days, and
on achieving other mutual conditions;
2. 30 months US$150,000;
3. 42 months US$200,000;
4. Milestone payments up to US2m based on the following timeline
and conditions. If the Company decides to proceed with the project
subject to combined JORC 2012 Mineral Resource at Picachos and
Pastizal exceeding 10 million tonnes grading average copper grade
of 1%;
-- 18 months US$600,000
-- 36 months US$400,000
-- If 20 million tonnes grading 1% copper identified then maximum payment is US$2m.
5. Debt payments to CSA of US$1.2m over 54 months.
The Pastizal Project and Prodiga Tenement
The Pastizal project [pronounced "Pas-tis-cell"] is situated on
the south west boundary of the Picachos tenements and located
approximately 50 kilometres (km) south of the coastal city of La
Serena, 10km west of the existing Carmen de Andacollo copper-gold
project operated by Teck Resources and the mining town of Andacollo
(population approximately 10,000 people).
The Prodiga tenement is part of the Picachos project and
represent 18.61% of the total mining property.
The owner of the Pastizal project and 50% Prodiga Tenement was
Consultoria y Servicios Mineros S.A. a small local consultancy
group based in Santiago. The consideration to be paid by Herencia
to the owner has been determined by reference to the value of the
land and the potential upside to the project.
Small scale artisanal mining is presently being undertaken by
private miners via small open pit and underground mining
operations. The miners sell the copper ore to a government plant
some 25 km south of the area.
This limited scale production will be permitted to continue
until Herencia is ready to commence its own production however in
the meantime this work should provide valuable geological and
visual understanding of the mineralisation. This type of small
scale mining is typical in Chile.
In addition to the copper grades being mined, the Directors
believe that the Pastizal site is an excellent strategic fit for
Herencia and its plans to the Picachos project.
About the Picachos and Pastizal Projects
The Picachos and Pastizal projects are located approximately
50km south of the coastal city of La Serena, 8km west of both the
existing Andacollo copper-gold project operated by Teck Resources
and the mining town of Andacollo (population approximately 10,000
people), and 10km south of the privately owned Tambillos copper
mine. The Projects are very well positioned for infrastructure with
existing high voltage power located approximately 3km east of the
Project area and serviced by two all-weather access roads.
Small scale mining is currently being undertaken by private
miners via small open pit and underground mining operations. Ore is
being trucked to a Chilean government owned processing plant (ENAMI
plant) where it is processed. This tribute (private) mining will
continue up until the Company acquires 100% of the projects.
Historic mining has focused mainly around the high-grade
structures, however in some areas the mantos has been mined up to
50m wide. Mineralisation generally commences from one to five
metres below the surface and appears open at depth.
Non-Executive Chairman Mr Peter Reeve commented:
"The acquisition of the Pastizal project is a significant step
forward for Herencia and expands its footprint in this strongly
mineralised copper belt. It is complimentary to Herencia's Picachos
tenements and will help the company achieve critical mass in its
search for a large copper resource".
Pastizal has had very little formally geological evaluation
however small-scale mining currently undertaken on site by the
currently owner is recovering high grade copper ore from the mantos
structures the company has previously alluded to. It is these
high-grade zones which will now become the focus of the company's
activity.
Herencia has commence da 3000 metre Reverse Circulation drill
program which includes drilling on Pastizal and follows the overall
positive geological assessment recently completed by the
experienced Geologist John Holliday.
Highlighting the significance of this transaction Mr Reeve also
commented that; "Pastizal is adjacent to the Picachos tenements
which containing high grade intercepts including amongst others,
117 metres grading 1.14% copper. Both sites are mined by tribute
private mining companies down to 50 metres and it is the results
coming from this activity which is providing the most promise".
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 in
northern Chile and La Serena Copper Project north of Picachos. The
Company's main technical and management office is in Santiago,
Chile where it has been operating for over eleven years.
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 2174Jon
Belliss, Beaufort Securities Limited
(UK) +44 207 382 8300
This information is provided by RNS
The company news service from the London Stock Exchange
END
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