Herencia Resources plc
("Herencia" or "the Company")
As part of the Board restructure and Corporate Reinvigoration strategy ("the Strategy") announced on 27 July 2016, the Company is working with interested parties with the aim of providing additional funds to progress the Company's Picachos Project (Cu-Ag) and for working capital requirements. As part of the Strategy, the Company is looking to use these funds to move Picachos closer to a decision to mine or provide the foundations for potential joint venture scenarios given recent interest in the project.
In preparation for this work, the Company has opted to improve its balance sheet and in conjunction with interested parties has used the recent funds from the sale of its 70% ownership of the Paguanta Project to Golden Rim Resources (as announced on 1 September 2016) to repay the majority of its creditors. This places substantial constraints on the Company's current working capital position, and whilst there are funding discussions with other interested parties there can be no guarantee that further funding will be provided.
However, the Directors are working with these interested parties to ensure the previously announced Board restructure and Corporate reinvigoration is successfully implemented so Picachos and the Company's other assets can be progressed to realise the value to all shareholders.
Further updates will be provided in due course.
For further information please contact:
Graeme Sloan, 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
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
This information is provided by RNS