TIDMHER
RNS Number : 1915C
Herencia Resources PLC
18 January 2018
Herencia Resources plc
("Herencia" or the "Company")
Drawdown of Convertible Notes
Drilling Update
Working Capital Update
Herencia wishes to advise shareholders that it has drawdown
US$400,000 in funding from its two major shareholders, Australian
Special Opportunity Fund ("ASOP") and Oriental Darius Co. Ltd
("Oriental"). On 1 April 2016 and 6 June 2016, the Company entered
into convertible note facilities which granted ASOP and Oriental
the right to invest additional funds at their discretion. Under the
1 April 2016 facility, ASOP and Oriental had a right to invest
US$150,000 each and under the 6 June 2016, ASOP and Oriental had a
right to invest US$50,000 each..
ASOP and Oriental have provided US$200,000 each to the Company
under these two facilities.
The drill program of 22 holes of around 2,400 metres at the
Pastizal lease was completed on 29 December 2017. The program was
below the planned 3,000 metres as the limestone and chert
containing copper mineralization was closer to the surface than
assumed.
Herencia is awaiting copper assay results.
Convertible notes
The US$400,000 provided to the Company by ASOP and Oriental
under the above-mentioned convertible note facilities have a Face
Value of $480,000 ("Face Value") and are convertible into ordinary
shares no later than 24 months from the date of drawdown.
The convertible notes have the same conversion terms as the
original facilities. Under these terms, ASOP and Darius will each
have rights to conversion as follows:
1. US$150,000 of convertible loan notes with a face value of
US$180,000 into shares at an exercise price of GBP0.0001
("Conversion Price") from the 1 April 2016 facility. Pursuant to
the conversion at a later date, new ordinary shares of 0.01 pence
each ("Ordinary Shares"), will be admitted to trading on AIM;
and
2. US$50,000 of convertible loan notes with a face value of
US$60,000 into shares at an exercise price of GBP0.0003
("Conversion Price") from the 6 June 2016 facility. Pursuant to the
Conversion at a later date, new ordinary shares of 0.03 pence each
("Ordinary Shares"), will be admitted to trading on AIM.
On conversion of the convertible notes set out above, an
additional 2,958,597,882 Ordinary Shares will be issued for the
face value for the face value of US$480,000 (subject to the USD/GBP
exchange rates at the date of conversion).
Notification of ASOP Interest
As set out on 19 October 2016, if ASOP was to convert all its
convertible interests in the Company, including those interests set
out in this announcement, its shareholding will increase from
2,519,392,831 to 4,064,309,731 Ordinary Shares representing 38.13%
of the enlarged issued share capital of the Company and the Concert
Party will hold 40.08% of the total issued share capital of the
Company.
Notification of Oriental Interest
As set out on 19 October 2016, if Oriental was to convert all
its convertible interests in the Company, including those interests
set out in this announcement, its shareholding will increase from
2,371,298,341 to 3,894,547,313 Ordinary Shares representing 36.58%
of the enlarged issued share capital of the Company.
Drilling Update at Pastizal Lease
Herencia commenced the proposed 3,000 metre Reverse Circulation
(RC) drill program on 6(th) December 2017 at the prospective
Pastizal copper lease adjacent to the Picachos tenement near
Andacollo in central Chile.
The drilling program consisting of 22 holes for some 2,400
metres of RC drilling tested the newly acquired Pastizal tenement
abutting the Picachos lease. The program was below the planned
3,000 metres and completed earlier than expected on 29 December
2017 as the limestone and chert containing copper mineralization
was closer to the surface than assumed.
Herencia is awaiting assay results.
Following the recent geological review of the copper properties,
the Company planned the drilling program to test under the current
mine workings at Pastizal, Montenegro and Pastizal Norte.
Previous drilling conducted in 2015 on the adjoining Picachos
tenements, which hosts the same mantos mineralisation as Pastizal,
intercepted mineralisation in 28 of the 29 drillholes with broad
zones of medium grade copper interspersed with high grade copper
intercepts within the mantos zones. The full details of the 2015
drill program are set out in the annoucement dated 26 August
2015.
One of the most interesting results of this style was drilled at
the '40m Shaft' prospect (See Figure 1) where significant copper
was intersected with; PP 14019 returning:
91 metres @ 1.42% copper and 13.5 g/t silver
(Including 20 metres @ 3.10% copper and 25.4 g/t silver)
Herencia expects this type of mineralised pattern to be found
over several distinct areas in the tenement block. (See
announcements dated 5 December 2017 and 18 December 2017 for more
details on Pastizal.)
Working capital update
The Directors estimate that the funding provided under the
convertible note facility will provide the Company with sufficient
working capital until approximately the end of March 2018; and
accordingly the working capital position of the Company remains
severely constrained.
Following the release of assays from the drilling program, the
board of directors will provide shareholders with an update on new
funding initiatives that the Company will look to undertake during
the course of this year.
About Herencia
Herencia Resources plc, is an AIM quoted exploration and
development company operating in Chile. In addition to the
Picachos/Pastizal 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.
Further background details on the Company can be found at
www.herenciaresources.com.
For further information please contact:
For Herencia Resources plc:
Peter Reeve +61 8 9481 4204
Jeff Williams +61 8 9481 4204
For WH Ireland Limited (Nomionated Advisor):
Katy Mitchell, +44 161 832 2174
For Beaufort Securities Limited
Jon Belliss +44 207 382 8300
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCZMGMMNNZGRZM
(END) Dow Jones Newswires
January 18, 2018 02:00 ET (07:00 GMT)
Herencia Resources (LSE:HER)
Historical Stock Chart
From Apr 2024 to May 2024
Herencia Resources (LSE:HER)
Historical Stock Chart
From May 2023 to May 2024